An agile global macro strategy can isolate diverse and less correlated sources of returns by factoring in regime shifts and profound changes in sentiment or expectations. The ability to go both long and short in various asset classes is an additional advantage, providing flexibility to react nimbly as conditions shift. Global macro generated a +9% return this year through June versus a -19% return for a 60/40 portfolio consisting of the S&P 500 and Bloomberg U.S. Aggregate Bond Indexes. Outperformance of this magnitude (28% in this case) could provide meaningful resilience to diversified portfolios during times of severe market stress.
