EC The Low Volatility Dilemma

The blending of volatility profiles to target a specific result has long fascinated me and in part describes some of what I do in client accounts. I write all the time about layering in alternatives like BTAL, MERFX, TAIL, PTLC or inverse funds to manage the volatility of the overall portfolio. When the S&P 500 is below its 200 day moving average (DMA) I want to reduce the portfolio's volatility with tools like the ones just mentioned. I think that makes more sense than a permanent, large allocation to a fund targeting the volatility factor, especially give the manner in which narrower based alternatives have evolved. SPLV and USMV should be less volatile than the broad market. I don't want to rely on should be because should be doesn't equal must be.

Low volatility definitely appeals to me but managing it more directly appeals even more.

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