Our series on finding diversification amid the crisis
On February 19, stocks set a record high. And now, just a few weeks later, markets are again setting records – but for all the wrong reasons: the swiftest equity market correction in history, which quickly became the swiftest bear market in history. The largest one-day point drop in equities since 1987. The highest VIX level ever. The lowest U.S. Treasury rates ever. Trading circuit breakers tripped three times in one week for the first time ever. What a month indeed.
With these wild swings, many portfolios are being tested for the first time in a long while, and many investors may be finding themselves less diversified than they had hoped as many asset classes have moved in virtual lockstep.
In this research note, we discuss what happens when many traditional sources of portfolio diversification fail, and how liquid alternative funds may offer a compelling case for diversifying exposure.
Click here to download the complete report.
This information is educational in nature and does not constitute a financial promotion, investment advice or an inducement or incitement to participate in any product, offering or investment. FS Investments is not adopting, making a recommendation for or endorsing any investment strategy or particular security. All views, opinions and positions expressed herein are that of the author and do not necessarily reflect the views, opinions or positions of FS Investments. All opinions are subject to change without notice, and you should always obtain current information and perform due diligence before participating in any investment. FS Investments does not provide legal or tax advice and the information herein should not be considered legal or tax advice. Tax laws and regulations are complex and subject to change, which can materially impact any investment result. FS Investments cannot guarantee that the information herein is accurate, complete, or timely. FS Investments makes no warranties with regard to such information or results obtained by its use, and disclaims any liability arising out of your use of, or any tax position taken in reliance on, such information.
Any projections, forecasts and estimates contained herein are based upon certain assumptions that the author considers reasonable. Projections are necessarily speculative in nature, and it can be expected that some or all of the assumptions underlying the projections will not materialize or will vary significantly from actual results. The inclusion of projections herein should not be regarded as a representation or guarantee regarding the reliability, accuracy or completeness of the information contained herein, and neither FS Investments nor the author are under any obligation to update or keep current such information.
All investing is subject to risk, including the possible loss of the money you invest.