Cheap today, expensive tomorrow
Why should investors use a GTAA strategy? The answer is simple: Valuations of assets vary all the time. Equities may be cheap today and expensive tomorrow. Conversely, bonds may be expensive today but more affordable in the future. Return expectations shift constantly; sometimes, taking risk is rewarded, sometimes it is not. Buying what is unpopular and selling securities that are in vogue is hard to do. Unfortunately, most investors do a poor job of deciding when to make shifts in their portfolio.
More than just stocks and bonds
Stocks and bonds are just the two most prominent asset classes. There are a host of other asset classes, such as international equities, emerging market debt, real estate, commodities, TIPs, various credits, real return strategies, that provide far greater diversification than a standard 60% stock / 40% bond portfolio. Investors should employ a full toolkit in building their portfolios.
An absolute-return approach to investing
Our GTAA strategies complement traditional stock and bond portfolios. They provide an absolute-return oriented approach to investing, and are designed to provide protection against inflation-- the main enemy to building and retaining wealth.