Terry Sawchuk, Volatility will increase and hedging equity holdings will be very important

Terry Sawchuk is the Founder Sawchuk Wealth.

Yen carry trade is what started this decline, but there is more to it than that. Populism is being driven by income inequality and general dissatisfaction with the average American’s current standard of living. We are living through a fourth turning and the traditional approach to asset management won’t work…I.e the usual 60/40 model is essentially dead.

Volatility will increase and hedging equity holdings will be very important because timing the ups and downs will be very difficult.