Investors Hunt for Hedges as War Shatters Decades-Old Strategies

Government bonds, which typically rise during periods of market stress to cushion equity losses, are now moving in the same direction with stocks as oil markets are going through unprecedented turmoil. The strategies that have emerged since include selected equities, as well as option overlays and some more esoteric corners of the credit market, in addition to the dollar. Chinese stocks and the Australian dollar are among the targets, while commodities like aluminum and soybean oil have seen an uptick in demand.