With Bradley Barrie (Co-founder and Chief Investment Officer, Dynamic Wealth Group) and Matt O’Bryon (Investment Analyst, Dynamic Wealth Group)
In this episode, our team dives deep into the intricacies of asset classes, correlations, and the importance of diversification in investment portfolios. We discuss the challenges of the traditional 60/40 investment strategy and explore the potential of alternative investment approaches.
Topics Discussed
• The limitations of diversifying only at the asset class level and the importance of understanding correlations
• The challenges faced by investors due to the shifting correlations between stocks and bonds
• How high growth, high inflation, low growth, low inflation, and other economic regimes can impact asset correlations
• The importance of being prepared for various market conditions and the risks of trying to predict market movements
• The goal of creating a smoother return experience for investors by minimizing drawdowns and downside risks
• The importance of understanding the risks and potential returns of different asset classes and strategies
• The challenges and benefits of implementing alternative investment strategies
• The role of benchmarking in investment strategies and the potential pitfalls of focusing too much on relative returns
• The importance of narrowing down the range of investment outcomes and eliminating big down years
• The nuances of managing risk exposures in portfolios and the importance of being adaptable in different market environments
• The potential of alternative investments and strategies in creating diversified portfolios
• The importance of understanding and managing the risks associated with different investment strategies
This episode is a must-listen for anyone interested in understanding the complexities of asset classes, correlations, and investment strategies. It provides valuable insights into alternative investment approaches and the importance of diversification in achieving smoother return experiences and minimizing downside risks.
This is “ReSolve’s Riffs” – live on YouTube every Friday afternoon to debate the most relevant investment topics of the day, hosted by Adam Butler, Mike Philbrick and Rodrigo Gordillo of ReSolve Global* and Richard Laterman of ReSolve Asset Management.
*ReSolve Global refers to ReSolve Asset Management SEZC (Cayman) which is registered with the Commodity Futures Trading Commission as a commodity trading advisor and commodity pool operator. This registration is administered through the National Futures Association (“NFA”). Further, ReSolve Global is a registered person with the Cayman Islands Monetary Authority.
