Page 9 - Strategy Flipbook v.2_Classical

In a bull Market State, levels of volatility are
usually low and systematic risk translates into a
correction of less than 12%. In this
environment, the portfolio would most likely
hold a high percentage of securities in the
Global Stock Market, which benefits from low
volatility, and a lower percentage of
Alternatives to the Stock Market.

However, with the shift from bull to bear, the
holdings would switch as well. Alternatives
would increase as they take the leadership
position and securities from the Global Stock
Market, which perform less well when
volatility kicks up, would make up a smaller
part of the portfolio.