This piece examines how recent macro shocks have reshaped the landscape for carry, where drawdowns may conceal new sources of return. By viewing carry as the market’s hazard pay and applying return stacking, investors may access shifting opportunities without abandoning core allocations.
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.