A Portfolio Built for All Economic Environments
Markets move through different “seasons,” periods of rising growth, falling growth, rising inflation, and falling inflation. No single asset performs well in all four. That’s why we design portfolios that draw on multiple, uncorrelated return streams, ensuring that something in the portfolio is positioned to do well regardless of economic conditions.
Our approach aligns with evidence showing that this kind of structure helps reduce large drawdowns and improves consistency over time, especially during unpredictable periods such as the financial crisis, the COVID-19 decline, and the 2022 bear market.
Risk-Balanced, Not Just Diversified
Traditional portfolios (like a 60/40) often appear diversified but are dominated by equity risk. In contrast, our strategy allocates risk, not just capital, across several complementary asset classes:
- Bonds to provide stability and support during deflationary or recessionary environments.
- Equities to capture long-term global growth.
- Alternatives to help hedge inflation and supply-driven shocks. This can include commodities, metals, currency, etc
- Global exposures chosen based on how assets respond to shifts in growth and inflation, two of the most important drivers of market returns.
By balancing how each component reacts to macro forces, we aim to deliver a smoother experience and more reliable long-term returns.