Bonds Are Starting To Serve As An Effective Hedge Again
WisdomTree·2026-06-27·via All Articles on Seeking Alpha
Summary
With 10-year Treasury yields near 4.5% and real yields above 2%, bonds are starting to regain their role as effective recession hedges, strengthening the case for capital-efficient portfolios like the WisdomTree U.S. Efficient Core Fund.
If stock-bond diversification improves, a 90/60-style allocation may once again offer equity-like return potential with better risk efficiency than a traditional 100% equity portfolio.
Equities remain the long-term growth engine, but higher bond yields and a healthier yield curve revive the case for replacing part of an equity allocation with a diversified stock-and-bond strategy.
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By Andrew Okrongly, CFA
Current Market Regime Revives an Original Case for Capital Efficiency
When we launched the WisdomTree U.S. Efficient Core Fund (NTSX) in 2018, the case was straightforward: a diversified stock/bond portfolio can be
