Appreciating risk was definitely a theme in 2022! And our most-read blogs reflect the sentiment. With the equity market drawdown, worsening daily volatility, and higher cross-asset correlations, there were few places to take cover this year. Will the environment persist into 2023? Perhaps, these articles are worth a second look as we start the new year.
A Brief History Lesson in Defensive Equities
History shows that a general risk-on environment cannot last forever. This blog explains how defensive equity can make a substantial impact in preserving capital and stabilizing your equity outcomes over the long term.
The Value of Diversifying with Defensive Equities
Defensive equities may have struggled in recent years, with the largest gap to their cap-weighted counterparts that we've seen. However, we have seen these levels before, and what followed may be of interest. Click here to see how a defensive component to your equity allocation can lessen the sting.
How this Market has Skewed Cap-Weighted Indexes
The risks of a top-heavy U.S. equity market are easier to see today, but U.S. equity indices have been highly concentrated for years, diminishing the diversification characteristics of these benchmarks and the passive strategies that seek to mirror them. Read this blog to explore the potential trouble we expected.
Why Low Volatility Makes Sense for the Long Run
This blog presents a compelling case for long-term, strategic thinking around the low vol asset class. Near-term market performance is hard to predict, but an effective low volatility strategy represents a persistent valuable, diversifying addition to any institutional investor’s equity lineup. See why low vol makes sense for the long run.
The Troubling Capital Concentration in U.S. Indexes
The run-up in mega cap companies and their dominance of index returns over the past five years has created risks that are unfolding today. Anytime market characteristics reach historical extremes, the potential for mean reversion follows. Find out more in this quick read.
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