ARIS

Tax cuts in the US have led to an acceleration in US economic growth this year. In September, US unemployment reached its lowest level (3.7%) in almost 50 years. We expect this acceleration to be temporary as the fiscal stimulus begins to fade over the coming year.

Imagine that your goal is to maximize the total return of your portfolio. You can either invest your portfolio 100% in stocks or split the portfolio equally between stocks and an uncorrelated strategy with an annual return that is 1% less than stocks.