Historically, stocks and bonds have had a negative correlation, allowing bonds to act as a stabilizer during stock market downturns. Recently, however, this relationship has turned positive, meaning the traditional diversification approach may no longer offer the same protection.
Similar to 2022, when stocks and bonds move in tandem, both assets can decline simultaneously, leaving portfolios more exposed to risk.
This shift challenges the old rules of portfolio management that rely on diversification alone. Our RiskFirst® process provides alternative methods of risk management, offering proactive strategies designed to protect in today’s evolving market environment.
Risk Without Refuge
- We believe the preservation of capital is key to consistent, long-term investment success.
- Our investment approach is grounded in economic theory and backed by quantitative analysis.
- Managing drawdown risk is a pillar from which we build our portfolios.
60-Second Breakdown: January 21, 2025
Redwood Senior Analyst Michael C. Sasaki, CFA® discusses recent market performance and explains this week’s chart.
Best Invest Advise EVER!
Bryan Bourgeois, CEO/Founder of Shorebreak Capital, discusses why 90% of investors fail and how to avoid these common investment mistakes with Conner Small, Partner at Redwood Investment Management, Shorebreak Capital’s dedicated asset manager.
