 |
In addition to improving overall
portfolio returns, managed futures have the ability
to perform well in a variety of economic climates,
including inflation and periods of down stock markets.
One reason for this is that managed futures trading
advisors have the ability to take advantage of price
trends in either direction. For example, during periods
of inflation, commodities such as gold, silver, oil,
and grains tend to do well.
Access
to Global Markets
The establishment of global futures exchanges allow
managed futures trading advisors diversify their trading
systems by participating in over 50 different markets
worldwide. These include currencies, stock indices,
financials, agricultural products, precious metals,
and energy products.
Thus, managed futures trading advisors have a variety
of opportunities for profit potential and risk reduction
through an array of non-correlated markets.
|
Value of an Initial $10,000 Portfolio with a 10% Allocation
to Managed Futures vs. a Traditional Stock and Bond
Portfolio
In the chart above, we compare a traditional portfolio of 60% stocks and 40% bonds (light blue) to a portfolio of 55% stocks, 35% bonds and 10% futures (dark blue).
Past performance is not indicative
of future results. Futures trading involves risk of
loss and is not suitable for all investors.
|
| |
