In 2023, we’re likely to get a recession, long bonds should soar, and stocks are likely to fall a lot more before the new bull market begins.
However, Wall Street doesn’t run on certainty but on probabilities. Surging oil prices may cause inflation to rise or get stuck and interest rates to hit new highs.
That could result in both stocks and bonds tanking, just like in 2022, a year when managed futures were the only strategy that worked.
These two managed futures ETFs delivered 22% to 36% gains in 2022 and are expected to keep delivering 9% to 10% long-term returns and dividend yields, just as they have done historically.
They are the gold standard of this asset class, the low-cost option that outperform their actively managed peers.
Combined with the right bond and stock ETFs and individual blue-chips they can create portfolios that can deliver 12% to 14% returns while falling 70% less than the S&P in even the most extreme market crashes.