Exit Coach Bill Black interviews Top Advisors for Tips, Ideas & Precautions for Business Owners who want to grow and protect their company value and plan for a successful Business Sale or Transfer. Listen daily so you can be well-planned!
Episodes
Sunday Mar 15, 2020
Sunday Mar 15, 2020
A 1 minute highlight of John Dade's interview.
Transcript:
Bill: Why should an investor look into something like a managed future?
John: Well, managed futures should be part of every investment portfolio. This goes back to the 1950's. A lot of people smarter than myself, Harvard professors, professors at the University of Chicago, Henry Markowitz back in the 1950's, came up with what's called, "Professionally Managed Futures: A Modern Portfolio Theory," which states that when you add a non correlated asset class to a balanced portfolio, not only do you get higher rates of return, but you also reduce your overall volatility and risk in the portfolio. A future's position is a commitment to do something whether you guess right or wrong, and it can be very expensive. On the other side, an option's position is what it is, it gives you the option, if you're right or wrong, to commit. So, simply, it's less downside risk.
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