>Historically, to the 1930s, stocks and bonds were inversely correlated Not true. In 1927, the correlation was around 0.18. The correlation was close to 0 in 1

>Historically, to the 1930s, stocks and bonds were inversely correlated Not true. In 1927, the correlation was around 0.18. The correlation was close to 0 in 1928 and it was 0.4 in 1929. >Only recently has that behavior not held true (around 2008, according to the very PIMCO paper you cited). Again, not true. From 1965 to 1995, there were only a handful of years when stocks and bonds were negatively correlated. See figure 1 in the research report from PIMCO if you want to find this.