TLT - Bonds Still A Less Reliable Hedge
2024-03-20 10:20:00 ET
Summary
- Lower macro stability has resulted in a different stock/bond dynamic. With the economy improving and recession fears all but gone, investors are more concerned about ‘sticky’ inflation and the Fed.
- In this environment, the dollar is likely to respond positively if fewer rate cuts translate into a stock market correction, serving as a hedge to equities.
- Until we see a further stabilization in inflation, where to look for equity hedges? As has been the case since 2022, the dollar still appears the best bet.
In this article, Russ Koesterich discusses the reason that bonds are not providing the same diversification benefit to equities as in prior decades. ...
Bonds Still A Less Reliable Hedge