Risk Parity Under the Microscope

Posted by Daniel J. Loewy (pictured) and Brian T. Brugman of AllianceBernstein (NYSE: AB) After tremendous growth over more than a decade of strong returns, risk-parity strategies have recently been struggling. Has the market run-up exposed a fatal flaw? We don’t think so.

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The Marriage of QDIAs and Managed Volatility in US DC Plans

Probably the best way to connect US defined contribution (DC) plan participants with the angst-reducing benefits of managing volatility is through a plan’s qualified default investment alternative (QDIA)—especially if the QDIA is a target-date fund.

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Another Step Forward for US DC Plans: Managing Volatility

We’re seeing more US defined contribution (DC) plan sponsors looking at a variety of ways to help their participants manage volatility—and the accompanying anxiety and doubts that can often push participants to abandon their long-term investing goals.

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Today’s Good News Isn’t Bad for US Stocks

Believe it or not, recent US housing market gains, the slight reduction in jobless rates and other signs of a revival in US economic growth are making some investors bearish about US stocks.  We think their fears are misplaced.

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Will This Risk-On Period Last?

Daniel J. Loewy and Brian T. Brugman The odds of the market staying in risk-on, risk-off mode are lower than they were a few months ago, in our view—but still too high to take a highly aggressive stance.

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How Can Balanced Investors Mitigate Their Equity Risk?

Over the past three decades, bonds have provided balanced investors with the best of both worlds. As 10-year Treasury yields fell from a high of 13.7% in 1980 to less than 2% today, bonds provided both strong returns and a great cushion in times when equities were weak. Bonds are still important, but investors shouldn’t [...]

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