The Pandemic Portfolio Podcast: Risk Parity, Convexity and Multi-Asset Factors in Extreme Markets

How long will the recession last? How deep will it be? What are the long-term implications for the economy, markets, and society? The global pandemic has ushered in a period of extreme uncertainty and investors are left with too many unanswered questions and afraid for their portfolios. Where do we go from here?

In this podcast episode, the ReSolve team begins with an examination of some of the macroeconomic narratives that may drive capital markets for the coming months and years. But since these future paths are all plausible – and some quite compelling – we then provide a framework to deal with such a wide range of possible outcomes.

Under heightened uncertainty in times like these, we need to prioritize:

• Maximum asset class diversification.
• Maximum strategy diversification.
• Reduce your bet sizes and adjust as volatility subsides.

This podcast conversation is meant to help investors navigate these uncharted waters and how to think about portfolio allocations in extreme market conditions.

Be sure to check out the slide deck – which we reference throughout the episode.