Can investors look to make money via a multi asset strategy as volatility/ market uncertainty increases? - Larry Hatheway

Larry Hatheway of GAM Investments

Apr 16, 2019

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1. Can investors look to make money via a multi asset strategy as volatility / market uncertainty increases?

Video transcript

1. Can investors look to make money via a multi asset strategy as volatility / market uncertainty increases?

I think it depends on the right kind of multi-asset strategy. The old 60-40 balance portfolio is no longer fit for purpose. In a world of declining returns and rising volatility, that's unlikely to deliver what investors expect. We have to be more clever with diversification, which means building in alternatives nondirectional strategies, like relative value and alternative risk premia into portfolios that also look across stocks and bonds. Properly designed to kind of a 30-30-40 portfolio, 30% equities, 30% fixed income, 40% nondirectional, looks like the best way to go in the multi asset world.

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