The bull market following the US Presidential election has been stunning. But with the specter of multiple Fed interest rate hikes on the horizon and markets stretched to their statistical limits especially in Risk Assets, it might be time to adjust portfolio allocations. Source research analysts Paul Jackson and Andras Vig, in their quarterly multi-asset research report on portfolio allocations, make recommendations to change allocation patterns, taking a decided turn towards noncorrelation. At some point in 2017 this market will find gravity. When that happens it is the time to change the portfolio allocation again, loading up on value.
Source Research: Cut Back On U.S. Equity & Debt As Risky Assets Surge
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.