Tag: Diversification

What The Data Says About Market Crashes

With global equity markets continuing to trade at all-time highs, most astute advisors are seeking downside protection.  The recent bull market in U.S. stocks entered its 10th year and the concern over a large drawdown or even an overnight price shock is also reaching tangible levels.  As systematic managers, we rely on the data to… Read more »

Goldman’s Warning & Blueprint’s Answer

Goldman Sounds A Warning This seldom happens: Equities, bonds, and credit being similarly expensive at the same time. “A condition that is going to translate into pain for investors”. (Full Article Here) Major drawdowns in 60/40 portfolios averaged 26% in real terms, lasted about 19 months, and took almost two years to return to previous peaks…. Read more »

An Alternative to Liquid Alternatives

In the aftermath of the Great Recession investors have sought greater diversification for their portfolios. One set of instruments that investors have used to achieve this goal is liquid alternatives (aka ‘liquid alts’). Investors are seeking out these strategies in an effort to reap the potential portfolio benefits of: Uncorrelated returns Superior risk-adjusted returns Lower… Read more »

60/40, Landlines, and 8-tracks

The investment industry is facing a “60/40 problem”. Over the past several decades, advisors have leaned on the 60/40 portfolio to deliver a less-volatile, but still relatively reliable return for balanced investors due to their lack of tolerance for the volatility and drawdowns of a pure equity allocation. While the addition of bonds to an… Read more »