Bonds and fixed income: Where’s the hedge?
Bonds and other fixed-income assets are supposed to offer diversification benefits, especially in rough times. But how have they really performed?
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IT IS no secret that 2022 has been a rough year for pretty much all asset classes across the board.
While US equities have fallen more than 20 per cent, the average fixed-income security has not fared much better: Most are down at least 10 per cent.
Of course, bonds and other fixed-income assets are supposed to offer diversification benefits and provide something of a cushion for when the equity component of a portfolio runs into rough times.
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