Portfolio Risk Mitigation without Bonds

by Dr. Michael Stamos, CFA

With the Fed fighting inflation and US Treasury bonds down more than 10% since the market top, how to handle the trillion-dollar bond problem is becoming more relevant for investors.

Dr. Michael Stamos, Head of Global R&D Multi Asset, flags this challenge in a study that was published in the March edition of The Journal of Portfolio Management.

He argues that government bond securities no longer seem to be the only obvious option for a crisis risk offset. Aside from this traditionally used “sheet anchor”, which reasonable risk management alternatives could help investors reduce their downside?

The article provides a thoughtful comparison and critical assessment of the opportunity cost and risk-reduction potential of several strategies that could help mitigate the portfolio risks of investors searching for alternative avenues to sovereign bonds.

Portfolio Risk Mitigation without Bonds cover

Related articles

After decades of slow price growth across developed markets, inflation has now reached its highest levels in more than 40 years. Investors worry about how to preserve their wealth and generate real returns in this inflationary environment. One proven option is the exploitation of momentum investing across asset classes.

Read more