Insight
Diversifying + Defensive Equity Approaches
In times when downside risk may lie ahead, a combination of diversifying and defensive equity approaches can potentially improve the probability of achieving positive outcomes.
Authors
-
Eddie Cheng, CFA
8/30/2023
5 min read
Topic
Multi-Asset
Key takeaways
- In an environment where we experience some sort of recession while inflation stays higher for longer, we believe cautious and defensive positioning is warranted.
- We believe an enhanced equity income approach could fit well in this environment given its dual focus on income and total return.
- Two other approaches for consideration in this environment are a long/short equity approach and a futures-based dynamic risk-hedging approach.