We have words for you.
Factor investing & punctuated equilibrium. There. Now those are interesting terms and all well and good but the bottom line is everybody is chasing yield and trying to figure out HOW to do that. Quants may be one answer (Paul Tudor Jones seems to think so), and we may indeed also be on the brink of a transitional shift (or “punctuated equilibrium”) that triggers a new way of pegging markets, as the author of the Institutional Investor article referenced below notes.
In fact our CEO believes we are already there, and that markets will never behave “normally” again as long as the Federal Reserve is involved (a/k/a “interfering”) with them. Hence he has employed a strategy that is extremely low vol, with options collars around leveraged large caps to protect underlying assets and gather premiums, that can withstand any head-scratching initiative the Fed throws at the markets. So that’s one answer to punctuated equilibrium in the markets.
Or just hoard some gold…..or bitcoin.
What do you think? We want to hear how you are managing your AUM with the assistance of financial technology in these markets. Hit us up on the FintekNews Linkedin Group and let’s start a dialogue!
Oh, and for your reference……………..
From Wikipedia – Factor Investing Definition
From Wikipedia – Punctuated Equilibrium Definition
Institutional Investor Article Referenced Above