Asness: Why Investors Should Use Momentum Strategies

The traditional 60/40 split between stocks and bonds was never meant to be chiseled in stone, but rather was a starting point for building a portfolio that offered growth from stocks and safety in fixed income. Investors could push the balance one way or another depending on whether the stock market seemed over- or under-valued (though plenty hurt their own returns in the process). But according to AQR Capital Management manager and founding partner Cliff Asness, simply weighting your portfolio toward one or the other isn’t good enough right now and investors should consider adding managed futures into the mix.

Momentum strategies can offer returns in a bear or bull market

“I think it’s crazy to believe that stocks, on a...