Given the issues of:
- historically low interest rates.
- highly leveraged global economy with a high likelihood significant debt defaults.
- economic and stock valuation uncertainties with risks of major falls.
And investors need to:
- generate sufficient income,
- protect against major market falls
When most portfolios aren’t ‘diversified non-correlated’ - a consequence of being ‘late cycle’ in the long-term debt cycle, with debt at historically elevated levels resulting in a low interest rate environment. In recent financial crises the value of both stocks and bonds have moved together.
By adding Gyrostat to portfolio as a ‘highly defensive’ fund:
- lowers portfolio risk.
- increases income.
- improves returns through investment cycle
- enables model portfolio outperformance vs peers.