35% of government debt currently has a negative yield. This is a great challenge for advocates of a traditional 60/40 (60% equities/40% bonds) portfolio because: A. The hedge/safety net for the portfolio is going to lose money. B. It implies that commodities are going to be harder to buy. C. There will be less liquidity in the equity market. D. The economic data will be increasingly uncertain.
Added by Leonard T.
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It means that investors are willing to pay the government to hold their money instead of receiving interest on their investment. This is happening because of various factors such as central bank policies, economic uncertainty, and geopolitical risks. Now, let's Show more…
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