2026, so far, has unwelcome echoes of 2022: war, an energy crisis and supply shocks. For markets, these factors have brought a familiar theme back into focus: the interaction of the traditional core components of a multi-asset portfolio.
In this article, we will share some observations on the stock-bond correlation, look at alternatives to bonds for diversification in periods of equity market stress and examine how equity market neutral strategy returns differ by inflationary regime. We will end with some insights into the capital efficiency advantage of multi-manager strategies when compared with traditional funds of funds.
Read | The Inflation Diversification Problem
