Thoughts on Hybridization

Portfolio construction research typically focuses on core asset classes like equities, government bonds, and gold. Equities are dynamic, driven by broad economic interactions, while government bonds and gold are more influenced by central bank policies. Assessing their risks requires different approaches—economic factors for equities and monetary policy for bonds and gold.

However, assets such as silver, high-yield bonds, and inflation-linked bonds present unique challenges that blur the lines between these categories, requiring a deeper exploration of their distinct dynamics. Let’s do just that.