Why Allocate at Least 20% to a Strategy Designed to Play Both Offense and Defense

Why Allocate at Least 20% to a Strategy Designed to Play Both Offense and Defense
Differentiating the start of a bull market from a bear market rally can be a difficult task. 2022 spared few portfolios with both stocks and bonds dipping into bear market territory.

Differentiating the start of a bull market from a bear market rally can be a difficult task. 2022 spared few portfolios with both stocks and bonds dipping into bear market territory. In January of 2023, many investors loaded up on riskier stocks and long duration bonds as they were rallying, just in time to get crushed in February.

Nobody really knows with certainty where the market will go. Rather than time the market, investors could allocate at least 20% to a strategy that is designed to thrive over the long-term in both bear and bull markets by playing both offense and defense in the same portfolio, like the Catalyst/Millburn Hedge Strategy Fund (MBXIX).