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...
To continue reading this article...
Join Investment Week for free
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes