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The Tell: The man who predicted Dow 20,000 says this is the ‘ultimate hedge’ against a stock-market crash

Prominent stock-market bull Jeremy Siegel says the best bet in a severe market downturn may be owning 30-year, U.S. government paper.

“And don’t forget, the long bond is the ultimate hedge against a stock-market crash. If there’s going to be a bad event internationally, North Korea, Europe or whatever, everyone runs to the long bond,” the University of Pennsylvania economist and professor of finance at the Wharton School of Business told CNBC during a Monday interview.

“It’s an insurance policy, it gives [the bond] a premium and a premium means a low yield on that instrument,” he said. “If something happens, they will go up if the stock market goes down 500 points.

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