After 10 years of investors picking up pennies thinking that there is no risk in basis trades, the tide turns. Extreme market conditions are almost a daily occurrence, leading investors to question whether trend-following can still be a diversifier in this environment. Are there systems that survive this environment of V-shaped price patterns and heavy kurtosis? Speaker: Kathryn Kaminski, chief research strategist and portfolio manager, AlphaSimplex Moderator: Alex Proimos, head of institutional content, Investment Magazine VIEW KATHRYN’S PRESENTATION SLIDES HERE

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Key Takeaways

• There are changes to market structure taking place which include the ongoing growth of passive and systematic activity and the exuberance of retail trading accounts with zero transaction costs.
• Government stimulus and emergency liquidity measures have created a temporary situation whereby underlying fundamentals are not driving recent equity market performance.
• Assets such as commodities and currencies are likely to experience higher levels of dislocation since these do not receive the same level of central bank support.

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Poll results

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