MIT's Andrew Lo: How to Survive this Market and Prosper

Financial Thought Leader, Andrew Lo, renowned professor of finance at MIT and hedge fund manager says the markets are more complex and challenging than ever before. He shares strategies to survive and prosper.

Andy Lo's "The One Investment"

ā€œThe One Investment...ā€

CRISIS ALPHA

A managed futures product that includes commodities & financials

"I think that for the coming years, probably some kind of managed futures product, something that involves commodities, but also financials. But that are futures contract based, so that they're betting on trends as well as dynamically readjusting their risk to take into account some of these macro factorsā€¦ Managed futures has often been called crisis alpha, because they tend to do well when there are big shocks in the marketplace. Now, they didn't do well last year when the S&P was up 16%.I think managed futures may have been down five or ten percent. But that's just the point. The point is that they do well when the stock market doesn't, and so they provide a nice counterweight to the traditional stock-bond investments."

- Andrew Lo

Total
0
Shares
Previous Article

With Modestly Rising Rates, Credit Sectors Look Appealing

Next Article

CANADIAN PACIFIC RAILWAY LTD (CP.TO) TSX - Jan 30, 2013

Related Posts
Subscribe to AdvisorAnalyst.com notifications
Watch. Listen. Read. Raise your average.