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Kristal Quarterly Q2 Round-Up

Kristal Quarterly Q2 Round-Up

This month we held the Kristal Quarterly Q2 webinar, where we discussed the outlook for Q2 with our Investment Committee. In the current market environment, a diversified portfolio can be considered to help manage risk while seeking growth.Our Founder and CEO, Asheesh Chanda and Head of Advisory & Trading, Thomas Meichl shared investment trends they see in 2021 Q2 financial markets, the risks facing investors, and what that means for our managed portfolios. Here are some key takeaways from the webinar.

1. Managing Inflation Expectations through Diversification

There is a market expectation for faster change to a higher level of inflation. In anticipation of such a move, treasury and fixed income assets appear less attractive as the 'fixed coupon' return now gets eroded by inflation.

2. Importance of Rebalancing

The primary function of rebalancing is to control risk. To weather through the various economic cycles, it is highly recommended to rebalance one’s portfolio according to the market situation and diversify into different asset classes.

3.Sector Rotation

Sector rotation strategies are useful as it can align your portfolio with the different phases of the economy as well as be the most updated with the latest market outlook. This typically involves a top-down analysis that includes monetary policy, interest rates, commodity prices, and other economic factors to help assess the current economic environment and determine the current phase of the business cycle we are in.

4. Emerging Trends for Gold

Gold and other precious metal prices have been depressed for the last 3 months on the back of the steep increase in real interest rates. As of the close of market on 31. March 2021, we are back to similar price levels for 1oz of Gold as were last observed at the beginning of March 2020.Watch the Webinar hereInterested in hands-off investing? Consider these managed portfolios.

The All-Weather US Portfolio follows the investment philosophy of the famous investor Ray Dalio. It brings together investment in 3 main Asset Classes: Fixed Income, Equity and Commodity. Its track record has had consistent performance through most market conditions. It is therefore ideal in times of economic uncertainties. Due to the growth component of equities, All-Weather US is also placed well for regular periodic investments.

Autopilot Secure is a 100% genetic algorithm-based Kristal with regular rebalancing. It allows investors to use algo-based investments that are monitored on an ongoing basis and rebalanced through a rules-driven approach, without having to lift a finger. This portfolio is suitable for an investor with a lower risk profile.

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We hope you have enjoyed the article. Feel free to schedule a call with us if you have any inquiries, our investment professionals will get in touch with you soon.

By

Kristal Advisors

April 27, 2021

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