The Low Rate Environment Could Shift Strategies

In our portfolio, we certainly know that the closer rates get to zero, the less likely momentum strategies are going to work on the long side. But if zero is your boundary, you can flip it around in a contrary strategy where you can short bonds there as they get closer to zero. As well though, it's the exposure to other markets. I think that's very important. If you look at the broad environment, it's very unlikely that traditional assets are going to do well. We're in a low rate environment with high valuations. That is not conducive for buying whole. It doesn't mean crises either.

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