I received an email yesterday from an investment management company touting their newest managed futures product (I ripped these just last week, I guess they're not reading the Servo blog). Here's what it said:
"Many investors are wondering if their portfolios are resilient and diversified enough to manage risks in this climate of economic and political uncertainty. The answer could be a strategy providing ongoing exposure to managed futures—an asset class with a history of low correlations and positive performance during equity market downturns."
Apparently, the way to deal with all of the risks and uncertainty in the market is to invest in a risky and highly uncertain product/strategy? Hmmm....
I think DFA co-founder David Booth's advice on dealing with investment uncertainty is far more honest and useful: