Adapting Portfolios with the Shifting Correlation Between Stocks and Bonds -- Live with Warren Pies
Warren Pies is well known on Real Vision for his coverage of the oil and energy sector. In the past year, however, he and his team at 3Fourteen Research have expanded their quantitative coverage far beyond this sector and constructed a dynamic real asset allocation model portfolio, which has outperformed the 60/40 benchmark in 2021 and in a long-term backtest with markedly lower beta. Pies will discuss how their current models are showing shifting correlations between stocks and bonds which spell even more trouble for the 60/40 portfolio. He will also touch on the claims that Bitcoin is uncorrelated to stocks, adding the nuance that it depends on which direction equities are moving.