Four Reasons Why You Should Allocate At Least 20% To A Strategy Designed To Play Both Offense And Defense

Four Reasons Why You Should Allocate At Least 20% To A Strategy Designed To Play Both Offense And Defense
Many Investors Are Ditching 60/40 and Integrating Funds Like MBXIX That Are Designed to Thrive in Both Bear and Bull Markets

If your investment portfolio feels derailed this year, you are not alone. Few investments are holding up well. For 2022 year-to-date, stocks are in bear market territory and bonds are close. Even the historically safer 60/40 stock/bond portfolio is close to bear market territory.

Unfortunately, the outlook remains bleak with rising rates, inflation, and geopolitical risks abound. In fact, even many typically optimistic market strategists predict that the worst may not arrive until late 2023 or 2024. Combine this with the fact that both equity valuations and bond yields are still far from historical averages, and it looks like 2022 has set the stage for a lost decade–a decade where an asset class generates negative returns–for both stocks and bonds.

A lost decade can derail an investor’s long-term financial goals. But today we’ll explain why not all hope should be lost on investors. By allocating at least 20% to a strategy that is designed to thrive in bear and bull markets by playing both offense and defense in the same portfolio, like the Catalyst/Millburn Hedge Strategy Fund (MBXIX), investors are positioned to thrive in almost all market environments, including a lost decade.