The COVID-19 market crash has awoken investors to the need to carry a portfolio that is highly diversified, but also hedged. Diversification has been part of the market lexicon for a long time, but that strategy has become less effective as investments across the board have become highly correlated with one another.
What has gotten far less attention is that portfolio need to be diversified with non-correlated assets, which are less tied to overall market behavior.
We offer one strategy for adding non-correlated assets to your portfolio: managed futures. The time to do it