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JD Gardner - Bridging the Behavior Gap | #491

The Meb Faber Show - Better Investing

CHAPTER

The Negative Correlation Between Stocks and Bonds

A lot of people own some version of like a vanguard or a black rock 60 40. That's embedded in the financial world. The issue with that, and we've been talking more and more about this is what gets overlooked? Well, this has worked for the last 30 years. Take out 2022 and this has worked perfectly. It's worked one because you've had this correlation benefit where you've been kind of structurally negatively correlated between equities and fixed. And so now we would argue that 2022 was a slap in the faceThat bonds have not only acted as a good diversifier, but also a good hedge. Cash has none, diversifier has some. So bonds have been

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