Market participants have essentially abandoned hedging strategies against policy uncertainty—and there's solid reasoning behind it. When governments artificially suppress borrowing costs through interventionist measures, we typically see inflation resurface. Here's the catch: once that happens, both stocks and bonds won't stay isolated from the fallout. They'll reprice sharply. The conventional wisdom that inflation can be managed quietly no longer holds in today's interconnected markets.
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RumbleValidator
· 14h ago
The government lowers borrowing costs, but isn't it just inflation that ultimately reaps the benefits? I'm tired of this trick; the data is right in front of us.
Hedging and such are just not sustainable; in the face of systemic risk, they are all paper tigers.
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rekt_but_vibing
· 14h ago
Haha, the big government lowering borrowing costs is really unsustainable. Inflation will rebound sooner or later, and then stocks and bonds will plunge together.
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SoliditySurvivor
· 14h ago
The central bank is causing trouble again, and us retail investors have to suffer the consequences.
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CryptoWageSlave
· 14h ago
Damn, playing with fire with policies is really risky, sooner or later you'll have to pay up.
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¯\_(ツ)_/¯
· 15h ago
Once the policy causes trouble, the hedging strategy will cool off; it's been obvious for a long time.
Market participants have essentially abandoned hedging strategies against policy uncertainty—and there's solid reasoning behind it. When governments artificially suppress borrowing costs through interventionist measures, we typically see inflation resurface. Here's the catch: once that happens, both stocks and bonds won't stay isolated from the fallout. They'll reprice sharply. The conventional wisdom that inflation can be managed quietly no longer holds in today's interconnected markets.