Managed Forex and Futures for IRA Diversification
For most IRAs, the goal was to put something away every year, be mindful of diversification, and by the time it came to retire, a nice nest egg would be waiting.
For a portfolio primarily comprised of stocks held from the long side, traditional diversification strategies are challenged by the likes of Black Swan events, global economic crises, and geo-political instability on a scale that has changed significantly in the past several decades.
The macro forces that can impact today’s markets may have the potential to overcome traditional portfolio diversification that is based primarily on market sector variation for long securities.
Non-correlation can be the key to effective portfolio diversification: Identifying assets that do not normally respond to fundamentals and market influences in the same way. Managed Futures and Managed Forex programs offer alternatives for investors. Consider market sectors ranging from gold and silver to cattle and corn, from sugar and cotton to the Dollar and the Pound, from among literally hundreds of global markets.
Managed Futures and Managed Forex programs may utilize strategies for trading through up, down, or sideways markets, offering the potential for non-correlation when combined with other portfolio assets held from the long side.
Find out if CTA Managed Futures investments or Managed Forex programs might work with your IRA and individual goals and risk tolerance level.