Buyers at all times should take into account a variety of market components when making asset allocation selections, however current market situations have created a myriad of much less acquainted challenges. The impression of years of presidency and central financial institution intervention to fight challenges corresponding to COVID-19 have produced a structurally rising rate of interest market in contrast to something monetary markets have skilled in a long time – and uncertainty has the propensity to extend volatility. Using a conventional 60/40 mixture of shares and bonds on this surroundings might show inadequate, significantly in mild of the dangers for longer-duration belongings corresponding to bonds and shares with low dividends and low free money movement.
What’s wanted now’s a extra versatile method that may incorporate a wide range of asset sorts with completely different traits with a view to meet particular funding aims.
By downloading this white paper you’ll uncover a multi-asset method that may be a helpful technique to assist traders navigate the challenges of an ever-changing macroeconomic surroundings and market panorama.