Running For Cover by Perry J. Kaufman
After stocks take a dive, many investors flee into bonds. Does that pay off, or is it already too late by then? Let’s find out.
If you’ve traded long enough and have experienced a few price shocks, you will be aware that when stocks plummet, bonds rally. They call that “flight to safety.” I call it “running for cover.” Most stock investors are long, so buying bonds or other interest rate futures or buying an interest rate ETF (such as TLT) may reduce the loss of a downward price shock ...