Bonds Are Back as Best Hedge Against Stock-Market Doom
- BlackRock to JPMorgan seek salvation in rallying Treasuries
- Correlation breakdown tainted tried-and-true strategy in ’18
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Reports of the death of bonds as a hedge against stock nightmares have been greatly exaggerated.
In the recent equity sell-off, U.S. Treasuries are back with a vengeance, and bringing with them the decisive return of a relationship investors have counted on for decades: When stocks go down, bonds tend to go up and vice-versa.