LoCorr Funds

The cornerstone of diversification is the allocation of investments to counterbalance losses and dampen volatility. But what happens when traditional assets, like stocks and bonds, move in lockstep as they are now?

In the current landscape, where bonds and stocks are experiencing positive correlation, it becomes even more important (if not critical) to incorporate additional diversification strategies to help mitigate portfolio risk and preserve portfolio balance.

Consisting of 60% stocks/40% bonds, this classic investment portfolio has historically been a trusted way to generate returns and diversify investor portfolios. However, we believe the 60/40 allocation may now be working against investors.

Persistent … or transitory? It’s the inflation question that has been weighing on financial markets over the last year. As each economic data point trickles out, it is analyzed and re-analyzed, with that focus in mind. But it may be the wrong question to ask.