Trend Proves Diversification Historically, But Can It Last In An Inflationary Environment?

Trend-following strategies have historically proved valuable in a downturn. Their robust performance over events like the dotcom bubble burst and the global financial crisis have made them a key component in asset allocators’ toolkits. But this year, for the first time in the last 30 years, investor sentiment has largely been dominated by concerns over rising inflation and the prospect of faster-than-expected central bank tightening. Can trend strategies maintain their value in the inflation-driven environment? EQDerivatives’ Georgia Reynolds reports.