Don Curren 🇨🇦🇺🇦
1 Bloomberg: The basic assumptions that have underpinned #hedging #strategies for decades are being undone by the escalating #war in #Iran. #Governmentbonds, which traders look to as a cushion for #equitylosses, are now moving in the same direction as #stocks. 🧵 #markets
Mar 13 at 1:38pmWeb
Show threadDon Curren 🇨🇦🇺🇦Mar 13
2 Bloomberg: It’s all driven by fears of a #stagflationary shock that could develop if higher #oil #prices ignite #inflation and undercut #economicgrowth. 🧵 #markets
Show threadDon Curren 🇨🇦🇺🇦Mar 13
3 Bloomberg: Such a scenario would make the usual #policy response of aggressive #interestratecuts unavailable in case of an #economic #downturn. Without #centralbank action, the traditional #60/40 #stock-and-bondportfolio may fail to deliver. #markets