Inflation and volatility: Do not let the two trends of 2022 burden your portfolio

Non-traditional investing

clock • 4 min read

There is no doubt that this year has been tough for investors, as soaring inflation and hawkish central bank policy have hit asset classes across the board.

The key question right now is: what can investors do in the face of such volatility? Can they, in fact, turn volatility and inflationary markets to their advantage? One strategy that has performed well this year, in contrast to the poor performance from traditional asset classes such as equities and bonds, is what is known as trend-following, with relevant indices posting their best year-to-end-September returns since 2000. What is trend-following? At heart, trend-following is a simple concept: buy something when it is going up, and sell something when it is going down. Former ch...

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