When do you need volatility dampening the most? In economic downturn. Ten years, of which most represented a bull market, don’t really provide evidence of whether any portfolio is a good volatility dampener. A longer historical period is needed to be more conclusive. Also it would be interesting to know which alts are included and in which percentages in the alt heavy 60% portfolio. Not sure if private equity for example has to be seen as vol dampener or more as return enhancer?
When do you need volatility dampening the most? In economic downturn. Ten years, of which most represented a bull market, don’t really provide evidence of whether any portfolio is a good volatility dampener. A longer historical period is needed to be more conclusive. Also it would be interesting to know which alts are included and in which percentages in the alt heavy 60% portfolio. Not sure if private equity for example has to be seen as vol dampener or more as return enhancer?