**Output:** Bloomberg ETF Analyst: Bonds Recently Fail to Hedge Against Stock Declines, Inflows into Money Market Funds and Buffer ETFs Increase

Odaily Odaily News: Bloomberg ETF Analyst Eric Balchunas posted on Platform X, stating that bonds have once again failed to hedge against stock declines. Since SPY's pullback from its June high, AGG, TLT, and LQD have all declined. Although the time window is relatively short, it bears some resemblance to the situation in 2022. He noted that many people have long relied on the 40% bond portion of the 40/60 portfolio to hedge against the 60% stock portion, which is also the reason for the significant inflows into money market mutual funds and buffer ETFs.

He further stated that this is not to say bonds will ultimately fail to hedge against stocks, but their recent track record is not ideal. Historically, prolonged Fed rate cuts have simultaneously boosted both bonds and stocks, while the sudden rate hikes in 2022 saw them decline in tandem. Recently, rising crude oil prices have sparked inflation concerns, leading to a recurrence of a similar situation.