Multi-Asset Class Investing

I recently wrote an article for the magazine of Portfolio Adviser on the topic of multi-asset class strutured products.

The current market environment has left investors struggling to generate high yields and capital growth from traditional asset classes. The current low interest rate environment means bonds may minimise risks but do not satisfy an investor’s appetite for yield. As correlations are currently high between equity indices, satisfactory portfolio diversification is harder to obtain using pure equity strategies. This is leading investors to seek yield from new asset classes or a composite of asset classes.

For more details, please refer to the following link:

http://junhua.lu.googlepages.com/MyCerosDownload.pdf

Dancing with Wolves? No, Dancing with Oil!

The correlations between oil and other asset classes have picked up a lot (either positive or negative) recently, which may provide excellent trading opportunities...

The correlation between oil and equity is high currently:





The correlation between oil and bond is significantly negative...




The correlation with FX (US dollar):





The correlation between oil and real estate:




The correlation between oil and hedge fund performance: