Rocq Capital’s Adam Cox explains the benefits of complementing traditional equity and bond investments with ‘alternatives’.
As bond markets approach what many perceive to be the end of a 30-year bull market and equity markets hit highs at the same time, the question on many investors’ lips is how they can protect capital if markets were to see a simultaneous fall in the value of both equities and bonds.
For some investors this means attempting to time a move to cash correctly (at the risk of missing a continued move up in asset prices or suffering the initial rapid fall if timed incorrectly); for others this means moving to equity markets not at highs, for example emerging markets, in the hope that they will continue to move upwards. Some will attempt to ride out the storm and remain invested throughout. At Rocq Capital, we prefer to take an ‘alternative’ approach to this problem.