Kaufmann-Rothstein International's Senior Trading Analyst Explains the Importance of Time in Investing Managed Futures
According to Kaufmann-Rothstein International's Senior trading analyst, Steve Garth, managed futures trading accounts can be suitable for any investment portfolios covering the wide-array products on stocks, indices, bonds, cash and even real estates.
- (1888PressRelease) June 30, 2011 - He stressed that trading accounts related to managed futures and other alternative investments are basically non-associated conventional investments which allows for real diversification. He further emphasized the importance of time in investing managed futures in below discussion.
Managed futures as one of the most recognized alternative investment asset classes have exhibited strong performance both in bull and bear markets for simple reason that it fundamentally helps diversify an investment portfolio. This augmented trading performance has been accredited to the fact that most managed futures accounts display lower or even negative correlation to the conventional investment such as bonds, stocks, indices and real estates. In this respect, most investment professionals consider diversification as vital element to any investment portfolio.
Contrary to bonds, stocks, indices and real estate, managed futures trading accounts have demonstrated the capacity to generate profits in any economic environment whether it is inflationary or deflationary. Managed futures trading accounts can also produce investment earnings even in recessions and economic boom.
Managed futures trading accounts are also able to boost investment proceeds while at the same time decreasing a portfolio's overall volatility. Customarily, when one asset class rises up, another asset class falls down. Managed futures trading accounts normally invest over a wide scale of asset classes. When it is utilized in combination with traditional asset classes, it can easily trim down potential risk and at the same time possibly bolster investment returns.
However, the Kaufmann-Rothstein International's clients are always warned that managed futures trading accounts carry substantial risk of loss and past performance is not indicative of future results. Use only risk capital for this type of investment and Managed futures trading is not suitable for all investors.
###
space
space