Talkin' Shop: Different Market Environments
Eric, CIO of Standpoint, talks about the four economic environments and how the investments that make up a portfolio will perform differently in each of the four ‘quadrants.’ A stock and bond portfolio may do well in a high growth and low inflation period like the 1990s and 2010s but can really struggle during other environments like the 1970s and 2000s. An all-weather approach is a solution to help round out a stock and bond portfolio.
- Long only commodities and currencies is not how Standpoint employs an All-Weather approach. There is a right and wrong way of combining multiple asset classes.
- The proper use of commodities and currencies can help defend against a lost decade and inflation.
- When the economy is doing well, and the stock market is going up, you need to be comfortable taking the risks necessary to make money during that environment.