Analysis: US inflation-linked bonds remain a good hedging tool.

Analysts at Oriental Horizon Asset Management stated in a report that US Treasury inflation-protected securities remain a good hedging tool. With uncertainty over the impact of the Middle East conflict on inflation and growth, Oriental Horizon Asset Management believes that the need for hedging and tactically reducing risk is greater. They stated that it is highly important for investors to diversify their investment portfolios by using inflation-linked instruments, government bonds, and commodities. This is also due to the changing correlation between bonds and stocks.