The Tactical Hard Assets strategy actively manages a portfolio of mutual funds representing commodities, precious metals, natural resources, currencies, and real estate income funds. The strategy encompasses multiple approaches as it seeks to achieve higher returns and lower volatility over a full market cycle than a traditional "buy and hold" strategy in the asset class. The strategy seeks to take advantage of both intermediate and long-term trends in the highly volatile world of commodities and currencies by deploying a proprietary set of algorithms and methods.
Demand for Hard Assets has escalated with uncertainty around the U.S. and Global Financial Systems.
Extreme inflationary and deflationary outlooks heighten uncertainty. Hard Assets may provide a hedge against both environments.
Stealth Inflation is devastating to precious purchasing power because of long-term impact of chronic deficit spending and quantitative easing that devalues the U.S. Dollar. The Everyday Price Index which reflects the basic economic change of everyday citizen's needs is at 8.02% (2010 - 2011). This is significantly higher than the official CPI of 3.1% over the same period.1
Emerging and Frontier Markets account for nearly 50% of global demand for commodities.2
1Disclosure: American Institute for Economic Research
2Disclosure: Aberdeens "The Bulletin" issue two - fall 2011