After an unprecedented period of accommodative monetary policy, legitimate questions have emerged about this tool’s effectiveness in combating stress in the global economy and credit markets. If the market starts to question the visible, steadying hand of monetary policy, global equity markets could struggle mightily—and gold could outperform.
With technical indicators pointing to an increased likelihood of a pullback in the broader market, we highlight a number of hedging strategies that income-oriented investors can take to offset this downside risk.