Dear Evan & Ivan,
If you are worried you could increase your cash allocation or choose strategies that are less affected by a possible correlation break-down, possibly the BUG, GLD-USD, maybe the World Top 4.
That being said, near zero yields have been a concern since 2012. I remember reading an article back then about the ‘no-brainer’ opportunity of a lifetime: Short Treasuries. The market defies logic. Bonds continue to perform exceptionally well while holding their negative correlation to equities. The only exception was 2015. That year is a good and real example of what happens when nothing works (equities, bonds, gold and everything else fell). We did go through it, survived adapted and are continuing into a profitable 2016. If this or a similar scenario materializes again we will adapt again. We do have strategies that hedge with Gold (the BUG) as well as exposure to foreign markets, which in turn have exposure to commodities, that may be positively affected by rising rates. Gold is always a prime candidate for an alternative ‘safe heaven’ hedge to rising rates so it could become a useful additional hedge to us in the future.