MACRO ENVIROMENT
A top-down macro model is used to determine broader asset allocation based on the following environments:
- Deflationary boom. Inflation lower, growth higher
- Deflationary bust. Inflation lower, growth lower
- Inflationary boom. Inflation higher, growth higher
- Inflationary bust. Inflation higher, growth lower
To reduce turnover, trend inflation and growth environments are considered
DERIVATIVES
Low risk derivatives:
- Boost returns
- Reduce risk