It looks like that the golden days of 60/40 stock bonds are over as bonds are having their largest drawdown in over 20 years. What do people think about starting a long position in $UUP given concerns about market volatility and/or recession over the next 1-2 years? It appears to have been a good hedge over the past few decades including YTD (up 5%) as people tend to sell their positions and move to cash during uncertain times. Is it safe to expect that the negative correlation will continue or is there a scenario where UUP can go down with the market during a market downturn?
Thanks for any insights
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