Now is the Time to Diversify

walshtradingAsset Management, General Commentary

Now Is the Time to Diversify.

With stock valuations historically rich and a substantial amount of uncertainty, we think it makes sense to own some portfolio insurance. According to LPL Financial, the S&P 500 has gone 242 trading sessions without a 3% pullback, the longest streak in history.

As seen below, the 10 year cyclically adjusted P/E ratio is in nosebleed territory, only surpassed by the 1929 peak and the tech bubble. We are currently in the 97% percentile of valuations, based on this metric.

P/E10 Ratios by Percentile

Why You Should Invest in Managed Futures:

Broad Diversification Opportunities

  • Over 150 global financial and commodity markets. Managed futures investment portfolios may include agricultural commodities, energy products, metals, interest rates, equities and foreign and domestic currencies
Reduced Overall Portfolio Risk

  • Because of this inherent diversity, managed futures offer the potential for lower overall volatility in a balanced investment portfolio.
Enhanced Overall Portfolio Returns

  • A diverse, well-balanced investment portfolio can offer more effective performance.
Profit Potential During All Economic Environments

  • Managed futures have historically performed well in market conditions that are adverse for traditional asset classes like stocks and bonds.
Visit our website to learn more about Managed Futures and view a list of Advisors we offer to our clients.

Would you like to talk with a Portfolio Specialist about how Managed Futures could improve your portfolio?

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Thank you and we look forward to speaking with you.