• Government bonds failed to provide a solid hedge against falling stocks this summer.
• Goldman Sachs believes that rising interest rates will boost term premiums.
• Treasury bond ETFs have outperformed the S&P 500 over the past year.
In a new report, Goldman Sachs analyst Francesco Garzarelli explains why the firm believes that government bonds remain too expensive to serve as effective hedges against a falling stock market. For now, traders should look elsewhere for return until the U.S. Treasury curve steepens over the next several months.
The Price Must Be Right
While Treasury bonds have historically been good hedges against a falling stock market, Garzarelli believes that high ...
/www.benzinga.com/analyst-ratings/analyst-color/15/09/5832411/goldman-warns-not-to-use-expensive-bonds-to-hedge-agains alt=Goldman Warns Not To Use Expensive Bonds To Hedge Against Crashing Stocks>Full story available on Benzinga.com
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