Given historical data, the correct answer to this question is Managed Futures (Trend) and it's not even close.
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The fact that only ~27% of people gave that answer means some combination of:
1. Most people don't understand what "risk-adjusted returns" means or how to construct a portfolio.
2. Most people don't know this historical correlation of managed futures/trend to stocks and bonds.
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3. Most people have some fundamental reason to believe that managed futures correlations will change dramatically in the future.
I would guess almost everyone is in camps (1) and (2).
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It's effectively used as a synonym for multi-market trend following.
A super basic example would be something that goes long a particular commodity, stock, or bond market when it crossed above its 200 day MA and goes short when it does the opposite.
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It's called manage futures because it's almost always done in futures markets rather than equity markets since you want the commodity exposure.
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So, like index bundles of rolling futures of various durations? They should be doing well now given supply chains
How do I buy some?
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Yes, most have been doing very well YTD.
Some good discussion in this thread. $COM ETF also worth a look IMO.
There are also a lot of private fund options that have some advantages over public funds. Generally start at $100k minimums though.
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Replying to @HML_Compounder @jagmavi and 2 others
... I do worry about single-manager risk though so I wanted 3 products. I chose $EQCHX because I like Jerry's pure process, no volatility targeting (let winners run), and no cute additions. I chose $KMLM because it is lower cost to reduce overall weight, but still has a (3/x)
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Ah, makes sense. 100k is well beyond what I’d allocate for something like this, but might do the etf 🤔
Personally been burned a bit by commodities in general
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Yea, commodities and managed futures have done bad for last decade so I think a lot of people feel that way.
Arguably that is a good reason to be bullish but we shall see...
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Made the mistake of buying a bunch of lithium stocks on a too-simplistic zeroth-order thesis 😆
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