Chart of the Week | July 19, 2021
Managed Futures Remain a Hedge to Market Bubbles
- Managed Futures remain a strong hedge to market bubbles as collective returns remain positive during bouts of market dislocation.
- When the S&P 500 Index lost more than 5% during a market bubble, the average return of Managed Futures was 1.64% during the Great Financial Crisis (’08-’09) and 3.66% during the Dot-com Bubble (’02).
- During the largest monthly return losses of a market bubble, the spread between the S&P 500 Index and Managed Futures was 11.3% for both the Great Financial Crisis (’08-’09) and the Dot-com Bubble (02).