Need to Know: Stocks and bonds are moving in tandem, something many investors have never seen before. Here’s a strategy for that.

Stock futures are edging up as March kicks off, while some Asian shares soared on a big rebound in China factory activity data.

Of course, there’s the risk that strong China growth could keep global inflation pressures higher, forcing U.S. and Europe long-term bond yields to rise even more (see Markets). That leaves equities “caught between responding positive to growth or negatively to inflation and potentially higher interest rates,” say analysts at Saxo Bank.

Our…