Trend is your friend, even in an inflationary environment 

clock • 4 min read

Trend following, or time-series momentum, is a rules-based investment strategy that uses both long and short positions to generate returns. It is based on the assumption that a trend (positive or negative) is likely to persist—that winning assets are more likely to continue gaining while losing assets are more likely to continue underperforming, says Eddie Cheng, CFA, Allspring Global Investments. Equities and bonds are expected to compensate investors for bearing systematic risk directly linked to economic cycles. Equity investors are exposed to growth risks and bond investors are expos...

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