In the 1970s, 'stagflation' dramatically reshaped investments. Amid economic challenges, bonds, usually seen as stable, faced a severe bear market, largely due to the oil shocks of 1973 and 1979. Reflecting on this period provides essential insights, especially when current events, like the 2022 external shocks, resonate with the past.
Striking the Right Balance: The Pitfalls of Overallocating to Hedge Strategies in Your Portfolio
While investing in hedge strategies as a core component can be a prudent risk management strategy, it is critical to understand the risks of overinvestment. This blog delves into the complexities of allocating to hedge strategies, as well as the importance of setting realistic expectations for yourself and your clients.