[sean_ca]

Thanks, Frank. Not sure whether you did some research on those countries that have had negative interest rates for years such as Japan. What is the situation of their treasury bonds used as hedging?

[sean_ca]

I think we have a challenge here. As the interest rate is so low and possibly towards negative, is the treasury bond such as TLT or using TMF still an efficient hedge? We saw that it didn’t work when the liquidity dried in March. But even when liquidity is not an issue will it still be working in the super low or negative interest rate environment? Appreciate all inputs. Thank you.

[sean_ca]

I mean liquidating accounts and wait to put positions on until the market settles down.

[sean_ca]

Hi Frank,

If you think the LI strategies wouldn’t work in this environment why not issue an email to all subscribers suggesting liquidating accounts until the market settled down? In this situation a monthly letter wouldn’t help and it was too late.

[Author]

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