A primary goal of spring training is getting the players back to basics by focusing on the fundamentals of the game. By doing so, the players ensure they are ready to go when the season begins. In honor of spring training, I’d like to take investors back to the basics and fundamentals of alternative investments (or alts).
Investors — big and small — are grappling with a persistently low-growth environment. But that doesn't mean there aren't any good investments out there. See how we identify opportunities in this environment.
In January, the 1-month risk speedometer continued to remain below its 5-year average, recording a score of –0.61 and landing slightly above the 25th percentile of rankings. Similarly, based on the 3- and 12-month speedometers, the appetite for risk remained low.
In this issue, we explore a number of crucial issues as the ETF industry continues to grow, including the importance of due diligence in selecting ETFs and the reliability and nuances of bond ETFs, as well as the finer points of building portfolios that include factor-based ETFs.
Once again, spring is near, a time of growth, renewal and restoration. But with concerns over slowing growth, uncertainty around economic and earnings outlooks, and ever-present U.S.-China and European political risks, investors should be prepared for potential spring storms and begin to consider defensive exposures.
While we have long advocated that alternatives should be a core allocation within any diversified portfolio, we believe that in this environment they will be even more helpful to investors.