Central banks’ tightening policies mark the start of a new phase for financial markets. We discuss where to find value and which mix of investments could outperform
Successful long-term investing is about choosing a sensible strategy and research has shown that asset allocation decisions account for the majority of variability in portfolio returns. It is important to choose a strategic asset allocation that is right for your risk tolerance, timeframe and objectives but this doesn’t have to be rigidly stuck to. Rather, portfolio management can be about making tactical tilts from these benchmarks to take advantage of opportunities or avoid threats.
In our first quarterly Alpha Asset Allocation Review, James Norrington discusses some of the research of leading quant analysts and asset managers to give a background to his tactical asset allocation decisions for the next three months. Going forward, we will populate these tactical asset allocation portfolios with investments from other IC Alpha research reports and demonstrate the risk to reward characteristics of our choices.
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