This article draws a provocative parallel between today’s U.S. macro environment and the structural constraints long familiar to emerging market investors – high debt, limited policy flexibility, and currency vulnerability.
Advisors seeking to diversify more effectively may want to consider new tools that build on the principles of the 60/40 portfolio – while enhancing the “40” to make it potentially more robust.
By using tools that combine traditional asset class exposures – such as those that seek to deliver 100% exposure to equities and 100% exposure to bonds in a single position – advisors can overlay core exposures back onto an alternative-heavy portfolio.
Trend Following, Managed Futures, Market Drawdowns, Bear Markets, Equity Risk, Diversification, Crisis Alpha, Return Stacked(R), Systematic Investing, Historical Analysis
This article explores how implementing a 100% stocks + 100% managed futures approach may help improve portfolio skewness and reduce drawdowns during periods of market stress.
This article breaks down the mechanics of a 100% equities + 100% managed futures approach, highlighting how managed futures can enhance portfolio.