In a Pandemic-Induced Bear Market, One Futures Program is Able to Navigate the Volatility

As equities enter bear market territory for the first time in 11 years, marking the end of the longest bull market in U.S. history, at least one boutique futures program is able to navigate the volatility.  The Bastiat Divergence Program is up 20% YTD.
 
Amanda Howard, Founder and CEO of Bastiat Capital, a registered Commodity Trading Advisor with the CFTC, says: “Our goal is to help investors hedge portfolio exposure to extreme events.”  She points out that in 2008, during another global market upheaval, the Bastiat Divergence Program was up 76%.
 
“In times of market distress, most investments are highly correlated with the stock market,” Howard notes.  “Adding a non-correlated strategy can make portfolios more durable.”
 
The Bastiat Divergence Program trades global futures markets and systematically tracks trends in nine geo-strategic sectors, according to Howard, who began developing the Program’s core model as a graduate student at Oxford University.  For example, the Program has short positions in spring wheat, London coffee, and light sweet crude, and long positions in gold and the Eurodollar.  “The Program has been able to generate this performance without shorting U.S. equity index futures,” she says.  “The 2008 performance was likewise achieved without short exposure to the U.S. stock market.” 
 
When asked about the risk of further declines, Howard says: “One of the big risks now is contagion spreading to the corporate debt market.  The Fed’s extreme, eight-year easy money policy led to not only a stock market super-rally but a corporate debt binge.  We are sitting on an unexploded corporate debt bomb.”
 
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The Bastiat Divergence Program is available to qualified eligible participants (QEPs) as defined by CFTC Rule 4.7 of the Commodity Exchange Act.  PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.  The risk of loss in trading futures and options can be substantial.  For more information, visit: www.bastiatcapital.com
 

 

Contact Information

Toby Gilbert

Founding Principal

Toby Gilbert PR

(1) 281-546-6457

toby@tobygilbert.us