The global COVID-19 outbreak, and the government-mandated lockdowns that ensued, caused risk assets to drop at an unprecedented pace over the first quarter of 2020.
This paper considers the role an enhanced allocation to real assets can play in portfolios during various stages of the pension life cycle.
A weekly review of global markets and multi-asset portfolios
Global markets and multi-asset portfolios
We raised the probability of Recession to 55% after virus-induced shocks, oil prices’ collapse and violent market volatility. We are de-risking, adding very high quality duration, while expecting credit markets to cheapen and reserve currencies to do well
LTCMRA Assumptions White Paper US
Full 62-page report with analysis of all asset classes.
Hedged equity (or options overlay) strategies can provide higher risk-adjusted returns over broad-based equity indexes, in part by using options to minimize the impact of market disruptions and downturns.
What to expect in the next 15 years.
Chart of JPM's long-term capital market return assumptions. Deleveraging will depress growth while risk assets should offer decent returns