Personal Investments • So much bond negativity

But the conditions that made the 2022 bond drop with stocks could occur. What would be the indicators, and if bonds and stocks both drop in tandem during drawdown, what would be the hedge?

You could have long interest rates go up if the bond market decides US debt is risky and wants a higher yield for taking this risk. This would cause existing bonds to lose value, with long durations bonds hit the hardest. Stocks might get whacked, too.

In that case, the hedge would be to be at the short end of the maturity spectrum or in cash/T-bills.

Which is what John Tudor Johnes is basically saying.

Statistics: Posted by anoop — Sun Nov 03, 2024 1:45 am — Replies 148 — Views 9559