Only recently have managed futures become accessible to individual investors. These assets – investments whose value varies with changes in market indexes, interest rates, currency exchange rates and commodity prices – have long been used by foundations and other institutional investors to diversify traditional portfolios of stocks and bonds.
Now investors who have total portfolios of $500,000 to $5 million can benefit from managed futures. These investments are often viewed as being a bit risky for individual investors, and it’s true that they’re not for the faint of heart.
Unlike many traditional investments, managed futures aren’t suited to long-term, buy-and-hold strategies; they must be closely monitored and managed. But when added to well-diversified portfolios of stocks and bonds and properly managed, they may help to protect individual investors against market declines.
Bob Lindner, CEO of Lindner Capital Advisors, provides more details in his article published by HCPlive in their Finance/Money section:
HCPlive | Finance/Money | The Missing Piece of the Portfolio Puzzle
Ideas and tips from Marie Swift, a nationally-recognized consultant who's worked with some of the top financial advisory firms nationwide for nearly twenty years. This blog spotlights financial services firms and allied institutions that Swift deems as adopting "Best Practices" in the industry. Swift also shares some of her own tools and ideas aimed at helping independent financial advisors.
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