Top Traders Unplugged
SI282: Rethinking Bonds: the Changing Role of Fixed Income ft. Andrew Beer
Feb 11, 2024
Finance and investment expert Andrew Beer discusses the changing role of bonds in investment portfolios and suggests considering alternative strategies like managed futures. They also touch on the performance of trend followers in the current market environment, the dangers of relying solely on calendar years for evaluating trends, and the changing role of the dollar and optimism towards the US economy. The conversation concludes with a discussion on the evolving nature of information and truth.
01:08:44
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Quick takeaways
- Replacing bonds with managed futures can provide better diversification and risk management in investment portfolios.
- The dominance of tech behemoths like Microsoft, Alphabet, Amazon, and Meta is shaping the US economy and stock markets.
Deep dives
The Shift from Bonds to Managed Futures
The podcast explores the idea of replacing bonds with managed futures in investment portfolios. The speaker notes that bonds have become less reliable as a diversification tool, especially considering their poor performance in the 2020s. The traditional 60/40 portfolio allocation may need to be reevaluated as bonds no longer provide the expected protection. Managed futures, with their low correlation to traditional assets, are suggested as an alternative for diversification and risk management. Despite the challenge of convincing investors, the growth and potential of managed futures as a mainstream investment strategy are discussed.
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