The market will turn at some point, which puts a number of dangers in front of retirees. Australians have historically been wary of structured products, but a new breed of defined return vehicles look to combine surety with a measure of liquidity.
The flip in the negative correlation between bonds and equities has revealed that the protections investors took for granted were based entirely on assumption. Now they need to diversify their diversification.
True diversification means owning assets that are truly uncorrelated. But that fact hasn’t stopped big investors from piling into the private markets while pretending that the Fed Put can protect their public portfolios.
The UK investment team co-founded by Andrew Lakeman is banking on its ability to bring liquid alternatives to markets that are on the hunt for non-correlated diversifiers.
How do investors stay on top of diversification and maintain adequate levels of non-correlation when markets oscillate with every breath, when asset relationships are as fickle as they are malleable?
The private markets have surged in popularity as investors hunt for a potent combination of yield and downside protection. But in a big selloff, the strategy that will do best is one that’s genuinely uncorrelated.
Nobody really cares about outperforming benchmarks – they want to make real money and avoid real losses. Atlantic House thinks it’s got the perfect way to do just that.
Derivatives should not be a “dirty word” for investors looking for better returns, capital protection and diversification at a time when volatility and higher inflation appear here to stay, according to Atlantic House Group’s Andrew Lakeman and Global X’s Evan Metcalf.
