File Outline Insight

Diversifying + Defensive Equity Approaches

In times when downside risk may lie ahead, a combination of diversifying and defensive equity approaches can potentially improve the probability of achieving positive outcomes.

Square geometric shapes.

8/30/2023

5 min read


Topic

Multi-Asset

Key takeaways

  • In an environment where we experience some sort of recession while inflation stays higher for longer, we believe cautious and defensive positioning is warranted.
  • We believe an enhanced equity income approach could fit well in this environment given its dual focus on income and total return.
  • Two other approaches for consideration in this environment are a long/short equity approach and a futures-based dynamic risk-hedging approach.
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