Portfolio Managers Andrew and Mathew Kaleel discuss different approaches to capturing both micro and macro trends in markets and their outlook for trend following in the near and longer term.

Key Takeaways

  • When seeking to capture trends in markets, we feel it is important to consider both micro and macro trends, each of which may come into play for different reasons and at different points in the cycle.
  • Capturing macro trends in economic indicators such as inflation, industrial activity and yield curve movements helps to offset the negative carry typically associated with trendless asset class markets.
  • We think the prospect of inflation, reflation and extended moves in the U.S. dollar could provide significant upside opportunities for trend following over the next three to five years.