Displaying items by tag: futures
Futures Could Be Smooth Out Your Return Profile
Rocky markets with lots of macro uncertainty have investors looking harder for diversification. While private assets are drawing attention, a quieter corner of the alternatives world — managed futures ETFs — has quietly surged in popularity.
Funds like the Simplify Managed Futures Strategy ETF (CTA) and the Invesco Managed Futures Strategy ETF (IMF) have each attracted hundreds of millions of dollars in new inflows this year.
These strategies follow market trends across asset classes, taking long and short positions in commodities, rates, currencies, and sometimes equities. Their key appeal lies in their historically low correlation to both stocks and bonds, making them useful portfolio diversifiers.
Finsum: With investors searching for tools to steady returns in volatile markets, managed futures ETFs are stepping into the spotlight as timely complements to traditional allocations.
Citi Says the Selloff Isn’t Over
(New York)
Markets are on a brutal run. At their peak, they were off 15% last week, and the worst news is that it is likely not over. According to Citigroup, the market is still positioned to fall considerably. Despite the big losses, futures are positioned as a net long, which means there is plenty of room for the market to fall. “There is not capitulation yet, not at all”, says Citigroup. According to the bank’s quantitative analysis team, stocks would have to fall 23% for the long bets to be cleared out. “The futures market has got less long [or positive on] equities but it’s still not short and that’s the problem”.
FINSUM: This makes pretty good sense. Markets were very overbought before the fall, and with Bernie in the lead, there is little to calm investors right now.