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Investing - Theory, News & General • What is negatively correlated with Bonds?

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It's hard to get a pure negative correlation, but there are ETFs that "go up" when interest rates spike on the longer duration of the curve hit, like now.

LQDH offers the best risk/reward IMO--at the cost of credit risk + absolutely zero safe haven status in a crisis. I have a small portion of it to complement BND.
i think this is a good potential answer as often interest rates and credit spreads are negatively correlated. It is interesting to note that in 2022 this was NOT the case (and LQDH has a small loss that year).

cheers,
grok

Statistics: Posted by grok87 — Sun Nov 10, 2024 3:46 am — Replies 60 — Views 2286



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