Investors seeking to diversify a traditional equity portfolio may consider market factors and the effects of combining various factors into a multi-factor strategy.

On the recent webcast (available On Demand for CE Credit), How to Use Single- and Multi-Factor Strategies in Every Portfolio, Mo Haghbin, Head of Product, Beta Solutions at OppenheimerFunds, highlighted the shift in the marketplace, outlining the current increase in volatility driven by a confluence of monetary tightening, a higher inflationary trend, and the introduction of tariffs.

Consequently, investors could look to alternative investment strategies like factor-based investments to help smooth out a bumpy ride. Greg Ellston, Director of Asset Allocation at Confluence Investment Management, also added that the nascent inflationary pressures triggered by more restrictive trade policies could foreshadow greater influence on equity valuations and on factor exposures.

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