Mission Critical Portfolios: How to Invest in Preparation for Market Downturns
David Johnson, a former rocket scientist and president of Global Capital Group, will discuss investing in preparation for a stock market downturn. When a strategy is designed to be negatively correlated to the markets, it can provide true diversification protecting assets in normally unfavorable conditions. David will demonstrate how allocating a portion to this type of strategy, in conjunction with your self-managed traditional investments, can assist in creating fault-tolerant, Mission Critical Portfolios.
Three things you will learn from this session:
1. Managed futures accounts as an asset class have outperformed the S&P 500 since 1980, with significantly less deviation in returns.
2. Over the last 10 years, all 11 sectors of the S&P 500 have become highly correlated, reducing diversification leading to increasing risk; managed futures provide good to excellent diversification with all 11 S&P 500 sectors.
3. Many managed futures proprietary strategies have little to no correlation to the S&P 500, utilizing diverse markets such as energy, agriculture, metals, bond futures and foreign currencies.