Can Advisors Boost Portfolio Resilience with Global Macro Strategies in 2025?
- Rick Lake, CAIA, CETF, CBDA
- Apr 18, 2025
- 1 min read
Updated: Mar 20
Written for The Truth About Your Future (DACFP): The Alternative View
Date: April 18th, 2025.
The Market Turn Has Arrived
In early 2025, institutional investors were already positioning for trouble ahead. A Société Générale survey showed that over 40% of institutional investors planned to increase allocations to global macro strategies.[1] Why? Because markets were shifting, traditional diversification wasn’t working, and macro offered potential flexibility when other strategies might falter.
Now, that moment is here.
In response to President Trump’s sweeping tariffs – effectively launching a global trade war – markets sold off sharply. U.S. equities dropped roughly 20% from their February highs, with volatility spiking across the globe. This “Tariff Tantrum” is shaking investor confidence and making it painfully clear: portfolios built on outdated diversification models may not hold up in today’s environment.
Why Advisors Should Care
For years, the 60/40 portfolio served as the foundation of diversification. But in today’s interconnected markets, it no longer offers the protection it once did. Rising interest rates, persistent inflation, and reactive central bank policies have pushed bonds and equities into a tighter correlation.[2] When stocks fall, bonds often do too.
This is an excerpt of the full article written here:
by by By Rick Lake, CAIA, CETF, CBDA | Founder, Narrative Alpha
