Is fixed income as an asset class no longer able to provide ballast against equity sell-offs?

With zero lower bound interest rates(ZLB), the investors fear rates will not be able to fall far enough to provide the safety expected from bonds.

In every other major recession, the Fed has had the room to decrease rates significantly without reaching zero bound.
In this environment, bonds have failed to provide its three key objectives: capital appreciation, income generation and preservation of the principle.

New approach and asset allocation needs to be adopted to provide alpha for investors. With these astonishing debt numbers, can U.S. government ever afford to raise the interest rate? Any sophisticated investor would bet that the interest rate will remain near zero for a long time to come.

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Peak Capital Trading

Peak Capital Trading was formed in 2020 as a proprietary trading firm based in Vancouver, British Columbia, Canada. Founded by veteran traders and Wall Street executives, our mission is to work with a diverse pool of Canadian and international traders in order to establish the leading firm for trading US stock market equities.

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Peak Capital Trading is a registered firm in British Columbia, Canada. It is not a broker dealer or licensed to give financial advice to investors or traders. Peak Capital does not solicit or accept any money from third parties or interested traders for the purpose of trading or investing on their behalf. Traders only trade the firm's capital and Peak Capital is assuming initial risk of losses for all traders and does not accept the capital of its traders.