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Adaption New Normal

The global financial crisis has put increasing pressure on the financial system and led to extensive central bank- and government interventions. As a consequence, a new market environment - “The New Normal” - has emerged, forcing portfolio- and risk management to overthink conventional theories. In the past, for instance, investors were able to reduce their risk by using a combination of different asset classes. Nowadays, the situation has completely changed as conventional diversification (e.g. 70% in bonds and 30% in stocks), is increasingly considered as inefficient to overcome the unprecedented challenges.

The sharp volatility of equities and bonds, coupled with significant fluctuations in their correlation, calls for a move away from rigid asset allocations and requires innovative investment strategies.

KJL Capital strives to support investors with new solutions to successfully face arising challenges of a new market environment.