Urban Backstrom is Director General of the Confederation of Swedish Enterprise and a former State Secretary in the Ministry of Finance who was charged with managing the 1991-1993 Swedish banking crisis.
Alberto Bagnai is Associate Professor of Economic Policy at the Gabriele d'Annunzio University, and a research associate at the Centre de Recherche en Economie Appliquée à la Mondialisation at the University of Rouen.
The longstanding negative correlation between stock and bond prices is an artifact of the low-inflation environment of the past 30 years. If inflation and inflation expectations continue to rise, investors will have to rethink their portfolio strategies to hedge against the risk of massive future losses.
shows why the hedging strategies of the past three decades may no longer make much sense.