How do Managed Futures compare to stocks and bonds?
Generally speaking, because Managed Futures have little correlation to stock and bond markets, it is quite difficult to make a comparison. It may be common practice for investors to dissect the individual elements of their portfolio and expect them to compete with one another over every time period. However, effective and prudent asset allocation would suggest that: • Managed futures cannot be looked at in isolation from the rest of the portfolio, nor should they be examined in relation to the stock market. • It is very important to ensure investors have a balanced approach to investing, to understand the rationale behind allocating portions of assets to different investment classes, styles or instruments, and that they always keep their long–term goals in mind. • Different instruments within their portfolio should complement each other, not compete with each other. It is important to remember that different investments derive profitability from a variety of economic and market scenari
