SI261: The Biggest Story in Asset Allocation ft. Nick Baltas

Today Nick Baltas and I embark on a journey through the shifting tides of investment strategy. For decades, equities have reigned supreme as the primary source of portfolio returns, while bonds played a crucial role as diversifiers. But over the past two decades, something intriguing has happened, and the dynamic between these two asset classes has evolved in ways we've never seen before. Stay tuned as we unravel the fascinating story of this transformation and explore what it means for modern investors. We also discuss what a leading Trend Follower describes as what really determins absolute returns in a trend following strategy...and you may be surprised of what it is.

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EXCEPTIONAL RESOURCE: Find Out How to Build a Safer & Better Performing Portfolio using this FREE NEW Portfolio Builder Tool

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Follow Niels on Twitter, LinkedIn, YouTube or via the TTU website.

IT’s TRUE ? – most CIO’s read 50+ books each year – get your FREE copy of the Ultimate Guide to the Best Investment Books ever written here.

And you can get a free copy of my latest book “Ten Reasons to Add Trend Following to Your Portfolio” here.

Learn more about the Trend Barometer here.

Send your questions to [email protected]

And please share this episode with a like-minded friend and leave an honest Rating & Review on iTunes or Spotify so more people can discover the podcast.

Follow Nick on Twitter.

Episode TimeStamps:

01:07 - What has caught Nick's attention recently?

03:02 - Industry performance update

04:30 - Q1, Corey: If an investor is heavily weighed equities, are they better off with trend following providers that don't include equities as one of the utilized asset classes

10:31 - How model portfolios can benefit from trend following

19:02 - A Changing Stock-Bond Correlation (AQR Paper)

23:50 - How structural inflation can impact the stock-bond correlation

27:46 - Illiquid alternatives and commodities as diversifiers

35:27 - Significant shifts in the asset allocation space

38:14 - Is cash better than bonds?

41:40 - Paper from Transtrend

47:15 - What really drives the absolute return in a trend following...

Today Nick Baltas and I embark on a journey through the shifting tides of investment strategy. For decades, equities have reigned supreme as the primary source of portfolio returns, while bonds played a crucial role as diversifiers. But over the past two decades, something intriguing has happened, and the dynamic between these two asset classes has evolved in ways we've never seen before. Stay tuned as we unravel the fascinating story of this transformation and explore what it means for modern investors. We also discuss what a leading Trend Follower describes as what really determins absolute returns in a trend following strategy...and you may be surprised of what it is.

-----

EXCEPTIONAL RESOURCE: Find Out How to Build a Safer & Better Performing Portfolio using this FREE NEW Portfolio Builder Tool

-----

Follow Niels on Twitter, LinkedIn, YouTube or via the TTU website.

IT’s TRUE ? – most CIO’s read 50+ books each year – get your FREE copy of the Ultimate Guide to the Best Investment Books ever written here.

And you can get a free copy of my latest book “Ten Reasons to Add Trend Following to Your Portfolio” here.

Learn more about the Trend Barometer here.

Send your questions to [email protected]

And please share this episode with a like-minded friend and leave an honest Rating & Review on iTunes or Spotify so more people can discover the podcast.

Follow Nick on Twitter.

Episode TimeStamps:

01:07 - What has caught Nick's attention recently?

03:02 - Industry performance update

04:30 - Q1, Corey: If an investor is heavily weighed equities, are they better off with trend following providers that don't include equities as one of the utilized asset classes

10:31 - How model portfolios can benefit from trend following

19:02 - A Changing Stock-Bond Correlation (AQR Paper)

23:50 - How structural inflation can impact the stock-bond correlation

27:46 - Illiquid alternatives and commodities as diversifiers

35:27 - Significant shifts in the asset allocation space

38:14 - Is cash better than bonds?

41:40 - Paper from Transtrend

47:15 - What really drives the absolute return in a trend following portfolio

52:23 - Network Momentum across Asset Classes (Oxford-Man Institute paper)

57:08 - Thanks for listening

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PLUS: Whenever you're ready... here are 3 ways I can help you in your investment Journey:

1. eBooks that cover key topics that you need to know about

In my eBooks, I put together some key discoveries and things I have learnt during the more than 3 decades I have worked in the Trend Following industry, which I hope you will find useful. Click Here

2. Daily Trend Barometer and Market Score

One of the things I’m really proud of, is the fact that I have managed to published the Trend Barometer and Market Score each day for more than a decade...as these tools are really good at describing the environment for trend following managers as well as giving insights into the general positioning of a trend following strategy! Click Here

3. Other Resources that can help you

And if you are hungry for more useful resources from the trend following world...check out some precious resources that I have found over the years to be really valuable. Click Here

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