Bonds Have Never Been So Useless as a Hedge to Stocks Since 1999

Bloomberg2021-05-20

Correlation between bonds and stocks has flipped to positive Inflation concern injects volatility into both asset classes Bonds aren’t working as a safe haven like they used to. On a day when risk ...

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Comments

UJAYSAMA
2021-05-20
UJAYSAMA
Thanks for info
snjj185
2021-05-20
snjj185
Like and comment pls
x2doubt
2021-05-20
x2doubt
This taught me something important. Always be ready to adapt when you are trading. Boggleheads has worked for a decade until it doesn't.
- soechunReplyBuytheDip:
  gg very busy and missed missions
- BuytheDip:
  why like this chub. btw, u ok today?
- x2doubt:
  lol
- soechun:
  reply to me this comment plisss
iImba
2021-05-20
iImba
Bonds no thanks
carene6666
2021-05-20
carene6666
Like comment pls
- Huathk:
  K
- Jazling:
  Respond pls
Poggki
2021-05-20
Poggki
Bondsssss

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In fact, the S&P 500 and 10-year Treasury futures haven’t been so positively correlated since 1999, with the 60-day metric reaching 0.5 on Wednesday. In contrast, the average correlation over the past two decades was negative 0.3, meaning a decline in stocks was often accompanied by a rally in bonds.\n\nThe relationship flip signals that the role of Treasuries as a shock-absorber has been eroded as the fear of inflation becomes a common denominator for both stock and bond investors. If it persists, it would mark a sea change as strategies such as risk-parity and 60/40 are likely to become more volatile.\n“Long bonds as your hedge worked in a Goldilocks era” of stable growth and inflation, said Charlie McElligott, a cross-asset strategist at Nomura Securities. “But now, due to the pandemic response, that old dynamic simply no longer applies. Inflation is a volatility catalyst.”\nThe stock-down-bond-up scenario that investors have grown accustomed to has only been a staple since 2000. 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Always be ready to adapt when you are trading. Boggleheads has worked&nbsp;for a decade until it doesn't.&nbsp;","listText":"This taught me something important. Always be ready to adapt when you are trading. Boggleheads has worked&nbsp;for a decade until it doesn't.&nbsp;","text":"This taught me something important. Always be ready to adapt when you are trading. Boggleheads has worked for a decade until it doesn't.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":4,"repostSize":0,"link":"https://ttm.financial/post/130978807","repostId":1131372875,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":4405382,"gmtCreate":1621617445633,"gmtModify":1680790177000,"authorId":3560673766995251,"author":{"id":3560673766995251,"authorId":3560673766995251,"name":"soechun","avatar":"https://static.tigerbbs.com/7cde02904a1a357d11bea54215a65153","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":3574529639292123,"repliedAuthor":{"id":3574529639292123,"authorId":3574529639292123,"name":"BuytheDip","avatar":"https://static.tigerbbs.com/e747a7fcf6ba7a0309d21475b62e76fa","vip":1,"crmLevel":3,"crmLevelSwitch":0,"individualDisplayBadges":[]},"objectId":130978807,"type":1,"supId":4392003,"prevId":4399119,"content":"gg very busy and missed missions","text":"gg very busy and missed missions","html":"gg very busy and missed missions"},{"id":4399119,"gmtCreate":1621568828805,"gmtModify":1680790061998,"authorId":3574529639292123,"author":{"id":3574529639292123,"authorId":3574529639292123,"name":"BuytheDip","avatar":"https://static.tigerbbs.com/e747a7fcf6ba7a0309d21475b62e76fa","vip":1,"crmLevel":3,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":130978807,"type":1,"supId":4392003,"prevId":0,"content":"why like this chub. btw, u ok today?","text":"why like this chub. btw, u ok today?","html":"why like this chub. btw, u ok today?"},{"id":4397279,"gmtCreate":1621561077204,"gmtModify":1680790039879,"authorId":3566977358597597,"author":{"id":3566977358597597,"authorId":3566977358597597,"name":"x2doubt","avatar":"https://static.tigerbbs.com/3568222443c539be8d2a37f9e8cbc6b0","vip":1,"crmLevel":4,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":130978807,"type":1,"supId":4392003,"prevId":0,"content":"<u>lol</u>","text":"<u>lol</u>","html":"<u>lol</u>"},{"id":4392003,"gmtCreate":1621521094607,"gmtModify":1680789941170,"authorId":3560673766995251,"author":{"id":3560673766995251,"authorId":3560673766995251,"name":"soechun","avatar":"https://static.tigerbbs.com/7cde02904a1a357d11bea54215a65153","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":130978807,"type":1,"supId":0,"prevId":0,"content":"reply to me this comment <u>plisss</u>","text":"reply to me this comment <u>plisss</u>","html":"reply to me this comment <u>plisss</u>"}],"langContent":"EN"},{"id":130925429,"gmtCreate":1621506388461,"gmtModify":1704358726709,"author":{"id":"3573771226233818","authorId":"3573771226233818","name":"iImba","avatar":"https://static.tigerbbs.com/2253c7a4701d3d505950766c3e8c4837","vip":1,"crmLevel":8,"crmLevelSwitch":1},"htmlText":"Bonds no thanks&nbsp;","listText":"Bonds no thanks&nbsp;","text":"Bonds no thanks","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/130925429","repostId":1131372875,"repostType":2,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":130963769,"gmtCreate":1621504640751,"gmtModify":1704358706050,"author":{"id":"3581685137027755","authorId":"3581685137027755","name":"carene6666","avatar":"https://static.tigerbbs.com/9df897fb7cd3e029d1ce54ce071a3c2b","vip":1,"crmLevel":2,"crmLevelSwitch":0},"htmlText":"Like comment pls&nbsp;","listText":"Like comment pls&nbsp;","text":"Like comment pls","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":5,"commentSize":2,"repostSize":0,"link":"https://ttm.financial/post/130963769","repostId":1131372875,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":4390053,"gmtCreate":1621508836820,"gmtModify":1680789914734,"authorId":3573472992263411,"author":{"id":3573472992263411,"authorId":3573472992263411,"name":"Huathk","avatar":"https://static.tigerbbs.com/43c7168c646d9ea6805194ed0003f1cc","vip":1,"crmLevel":5,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":130963769,"type":1,"supId":4389872,"prevId":0,"content":"K","text":"K","html":"K"},{"id":4389872,"gmtCreate":1621507587378,"gmtModify":1680789898172,"authorId":3566821013640470,"author":{"id":3566821013640470,"authorId":3566821013640470,"name":"Jazling","avatar":"https://static.tigerbbs.com/85e0a83573d9307f57fca9b2baed72af","vip":1,"currentWearingBadge":{"badgeId":"1026c425416b44e0aac28c11a0848493-2","templateUuid":"1026c425416b44e0aac28c11a0848493","name":"Senior 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