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BofA Warns Rising Stock-Bond Correlation Threatens Portfolio Hedges

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The Story

News Summary

  • Bank of America reports that positive stock-bond return correlations have returned, eroding Treasuries' historical role as a portfolio hedge.
  • In a higher-rate regime, allocators demand higher fixed-income yields, treating Treasuries primarily as return-generating assets rather than automatic ballast against equity drawdowns.
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US500 price history

7656.98 +14.20% over the displayed period

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