Bonds Show Hedging Magic in Latest Test to Rebuff 60/40 Haters

  • ‘Ferocious’ bid for Treasuries emerged Friday in stock selloff
  • Bonds reduce portfolio volatility over decades in Ardea study
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Bonds have been down all year, but the omicron fallout is a reminder that they are anything but out.

With the S&P 500 posting its biggest slide Friday since February on spread of the new strain, Treasuries rallied big time on haven buying and cushioned the selloff in global risk markets.