As we have repeatedly suggested, the best time to own a crisis-focused strategy is just ahead of the next crisis. History suggests that we may now be on the precipice of one.
Managing The Equity Crisis Cycle
Equities follow a repeating cycle of crisis periods created by monetary policy. If each cycle ends with a higher stock market and produces VIX profits, then a strategy using these pieces in combination should end up ahead over time. This is precisely what has been observed with Tactical Beta since its inception nearly seven years ago… we expect this cycle to ultimately end profitably like the others before.
September 2023 Commentary
August 2023 Commentary
July 2023 Commentary
June 2023 Commentary
Powered by “AI” optimism that has turbocharged a handful of the largest stocks in the world, markets are certainly giving the appearance of strength so far in 2023. As greed overtakes fear once again, it is worth noting that emotional markets (on the way up or down) often create allocation errors as the larger context is ignored.
May 2023 Commentary
As sector rotation has so far kept a lid on index volatility in 2023, VIX headwinds from the options market have been abating as both “skew” (the price of puts relative to calls) and the price of tail protection have quietly reversed much of last year’s weakness, setting up better potential for VIX movement once conditions change