Equity Market Neutral Investing, Part I: Investors Want Alternatives

Investors are faced with a number of threats to achieving their financial goals, including heightened asset allocations, equity market volatility, low interest rates and the uncertain future of the economy. Alternatives such as an equity market neutral strategy might help combat such forces and appears to be in sync with related financial planning problems.

To address the need for diversification and risk reduction, a skillfully managed equity market neutral strategy can provide a natural complement to equity and bond investments and help lower total portfolio volatility. We’ll examine this strategy in upcoming posts. Next week: Equity Market Neutral Investing, Part II: What’s Neutral?

Diversification does not assure a profit nor does it protect against loss of principal.

The opinions expressed are those of our investment professionals, and are no guarantee of the future performance of any American Century Investments® portfolio. This information is not intended to serve as investment advice; it is for educational purposes only.