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Hedging equities with bonds

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Treasurys and corporates can protect against equity declines, but Treasurys are a better hedge against recessions. There were only three years where Treasurys, corporates, and equities all declined: 1931, 1969, and 2018. In recent years, the correlations between equities and Treasurys have been modestly negative, but modestly positive between equities and corporates.

Ned Davis Research | Fixed Income | Focus | Bi-Weekly

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