Market Monitor: July 10

Goldman Sachs Asset Management: Market Monitor: July 10

10 July 2020 | Market Monitor

Today's environment of persistently low rates has often proved challenging for fixed income in hedging equity drawdowns. However, historical returns for intermediate duration Treasuries during equity bear markets have averaged almost 11%, providing a significant offset to risk assets especially as the correlation remains negative. Even if nominal yields dip to zero, we believe there may still be some return left to squeeze out of bonds.

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