If You Have to Own Bonds…
Wednesday, January 24th, 2018 Categories: Corporate Bonds, Government Bonds, Momentum vs mean reversion
This is how to trade them
All our tactical asset allocation models are close to maximum underweight in fixed income. If you have to have some exposure, our models are clear that the best overall strategy is momentum with a bias towards risk-aversion. Other strategies tend to lead to lower returns and larger drawdowns over the long term.