Recessions have always been predated by inverted yield curves, but not all inversions have led to recessions . . . even when investors are nervous.
As borrowing costs have moved higher the economy has continued to perform well, particularly those parts most levered to the ongoing reopening.
Our results weren't pure Magic Formula but they outperformed the S&P 500 over a 10-year period. However, the smart beta approach can still be refined.
How do we manage client assets, protect against losses, and compound returns in an interconnected world? For us, it comes down to robustness.