This year’s market tumult has spread across risky assets and havens alike, leaving nervous investors questioning where to hide from further pain. “We bought a tremendous amount of one-year Treasury bonds at 4%, you’re getting paid to hold cash," said Mr. Rieder. Investors have parked $13.5 billion in exchange-traded funds holding Treasury bonds that mature in one to three years. For that reason, some investors say those strategies lower risk more than they act as a hedge against stock market declines. Mr. Spitznagel argues the managed futures’ insurance against the stock market this year hasn’t been enough to offset the premiums investors paid over most of the past decade when stocks soared.

Source: Mint October 01, 2022 18:19 UTC