'Like a drunk stumbling across the highway.' How one fund is preparing for market turmoil even as stocks have surged.

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After a sensational 2022 when the world turned upside down -- the SG CTA index returned 20.1% last year -- this year that index is flat. One manager explains...

It’s inflation day, and while that may have led to market turmoil last year, lately economists have had a pretty good handle on things. Brent Donnelly of Spectra Markets points out there was only miss by economists on core consumer prices this year. In fact, the market seems to be reacting more to the Nasdaq’s reweighting than any macro developments of late.

Andrew Beer, the co-portfolio manager of the iMGP DBI Managed Futures Strategy ETF DBMF , which seeks to replicate the average return of the 20 largest managed futures hedge funds, told investors in a presentation about how the market keeps dodging landmines. Its biggest position is a short of the Japanese yen, based on the view the Fed hikes while the Bank of Japan sits tight. The fund is also long the S&P 500 SPX versus both non-U.S. developed markets as well as emerging markets, which he says is “arguably a growth vs value bet, which lines up with the AI frenzy but not necessarily with higher rates, which tend to benefit value stocks.

For more market updates plus actionable trade ideas for stocks, options and crypto, subscribe to MarketDiem by Investor’s Business Daily. The Federal Trade Commission’s Lina Khan is in the hotseat after the agency lost its court battle to block Microsoft’s acquisition of Activision Blizzard.Top tickers Here were the most active stock-market tickers as of 6 a.m. Eastern.

 

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