Enhanced PP & Cash

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This topic contains 1 reply, has 2 voices, and was last updated by  Alexander Horn 2 months, 2 weeks ago.

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  • #67874

    randyfloyd
    Participant

    Have you thought about adding Cash as an asset class to the Enhanced PP? Even is it is sparingly used in the strategy, Cash would be beneficial in a deflationary environment, particularly if we ever get back to high interest rates. I could certainly see a situation in which equities and bond funds lose value at the same time… they are not always inversely correlated.

    #68457

    Alexander Horn
    Keymaster

    Thanks for the comment! Using bonds vs cash offers a positive return bias, that is bonds act as hedge, but also long-term tend to go up due to the yield they offer. This is why we normally avoid any go-to-cash mechanism, but you can certainly incorporate it by yourself using our QuantTrader Software.

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