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Can pension plans be protected with safe trading?

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  • Description

    Is the U.S. treasury a safe haven for investing?

  • Duration 3:49
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Let's talk more about what's going around this Margaret nasty -- cameras is with this portfolio manager compass and E&P alternative strategies fund.

Stephen first quickly what what is that he'll turn -- strategies fund is to shore fun.

That's that's a multi asset long shore and many many different asset classes like commodities.

Currencies real estate stocks by Citi -- if you really wrong that's exactly right you can invest in whatever the heck do you think is working.

Well weekly when all asset classes so we don't want opinion risk marker -- -- there is.

But we do have the ability of like what was mentioned to move in and out of a long or short positions to help protect that pension plan -- -- Like season is going to be anti second to talk about silver is -- on its hair you can invest and it certainly can you're going long or short.

How why you know I just wondered if -- a fund like -- that can invest in equities international.

Emerging.

You know you -- currency -- Investing as well how to bounce -- now with the rest my portfolio because as it is you know anyone that owns a mutual fund or one or two.

Is there.

Owning multiple.

Pull up companies without them even realizing you know Apple's probably in every single fund these days big companies like ExxonMobil things like that.

How do lot -- like the -- wind in my allocation.

Investors need to understand that asset allocation is far more than just stocks and bonds there are still many stock funds out there.

That have the same thing.

What is of value fund -- growth fund large medium or small it's still the stock market.

It's still gonna go with the -- whether it's a roof high tide or low tide.

It's bonds.

You're not gonna get more what the bond market gives you -- and you every year in the bond market do.

We are but we can long -- short -- Our global bond hedge -- class.

Is ten animals liquid bond market -- the world longer short now right now the role long.

So when interest rates start creeping up guess what happens the bond price price falls -- listen so we have the ability to protect.

Now let me ask you where you where you more heavily weighted in the fund right now.

Well all the growth asset classes are equally weighted you said that so what does that mean equities have a 20% piece of it or whatever the percentages.

For instance look for stuck on short 60% -- currency long short 60% Akamai long short 60% real estate same.

What we do is we equally weight the volatility.

So if commodities get hit.

Our currencies helped pick it up -- stock -- short helped pick it up.

So you're not taking anyone -- or taking a -- which I don't live in one sector and also that it doesn't work so what do you think now.

The safest -- class is no question the US treasury.

Because there's still a flight to quality.

Unfortunately since 2008.

Correlation has been very very high among growth asset class it is no longer asset allocation it's risky assets and safe asset class a safe assets.

So investors have got to have something that can have a low correlation to stock market we still have major problems you'll talked about it and min ago in terms of the debt we have.

We're spending for more money we make Europe is in worse shape.

If we think we're gonna significantly grow from here is not gonna happen.

Europe has too much impact on our economy whether we know are not so if it gets worse over there.

We're gonna have much slower growth -- we've got to have something to allocate in our portfolio stocks bonds cash alternatives.

The perfect portfolio is have a third and -- it helps significantly.

To your volatility and your pension plan and that's treasuries you saying that their treasury is a safe asset class we have that.

The yield right now as one point eight as of and -- gonna OK and -- ten year treasury it will most likely declined to the one point five range -- -- It is gonna stay low for a couple years.

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