At today's yield levels, selling duration might be a good hedge for equities. : Yes, you read that right. The risk asset market today is one very highly levered yield trade. Whether you look at FAANGs, Nasdaq, EM equities, High Yield, short volatility strategies or even long Treasury bonds, the juice that keeps asset price appreciation going is the low level of yields. Common sense tells us that as yields fell over the last decade, all asset prices went up due to both the discounting effect and the stimulus effect. The discounting game is likely played out.