Timmer: Bonds Will Hedge Volatility Better in a 2024 Recession
Urien Timmer · An Investor’s Briefing · Sep 12, 2023 · at 9:23
Jurrien Timmer, Director of Global Macro at Fidelity, explains why higher yields restore the traditional volatility-hedging role of fixed income.
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“If we do get a recession down the road sometime in 2024, Then you would think that bonds will do what they normally do, which is to protect investors from volatility, and again, last year, bonds were in the eye of the volatility storm, but now that yields are much higher, and the Fed is much, much further along the path of interest rate hikes, my guess is that bonds will be a better hedge than they were last year, and as they generally are over time.”
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