An allocation to low volatility strategies has been a key component for helping to reduce the overall risk levels of a portfolio. They have reduced the overall risk metrics of a portfolio by helping to limit, in some cases, the downside risk during down markets. However, they suffer from a large disadvantage when compared to convertibles. Low volatility strategies have not demonstrated the ability to participate in the upside during periods of strong market rebounds and/or exceptional market conditions such as those seen since the start of the 2020 pandemic.
Bonds Are Not Protecting You From Inflation
This paper delves into how bonds may not be as effective as expected in safeguarding