The worst collapse in financial markets since the Great Depression devastated life savings and turned a whole generation against the stock market.

They proved reasonably cheap back then. Bonds move like seesaws: When the yield goes up, the price goes down, and vice versa. The financial crisis in plunged the world into deflation, or falling prices, and fear of depression. In those circumstances, Treasury bonds rose sharply and yields fell.

This time around, though, Treasury bonds have a much harder job pushing the cart up the hill. For instance, the year Treasury bond today pays just 2. To provide style levels of protection, Treasury yields, in effect, will have to halve again — to as little as 1. Such an event would be extraordinary.

It will happen only if investors worldwide embrace the idea of persistent deflation, or falling prices. And if inflation fears were to pick up, bonds could actually fall as well.

Investors, cushioned by a gigantic year bull market in stocks and bonds, have forgotten that, in very bad situations, both stocks and bonds can crash at the same time. It happened in the s and in the s. And if investors are honest, they have to accept the risk that it could happen again. Brett Arends is a MarketWatch columnist. Follow him on Twitter BrettArends.

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What Happens to Bonds in a Stock Bear Market?

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