When it comes to fixed income models, there’s playing it safe, then there’s going all-in on Treasuries. Yet that level of bearishness is precisely how 3EDGE Asset Management’s Deputy CIO Eric Biegeleisen has positioned the firm’s bond allocations.
VettaFi’s financial futurist Dave Nadig sits down with Biegeleisen to explore why 3EDGE is playing it so conservatively right now. Nadig described 3EDGE’s model positioning as, “all Treasuries, and maybe some gold,” to which Biegeleisen agreed. The firm has been at or near its minimums for U.S. equities for months, he added.
“We find U.S. equities to just be incredibly overvalued,” he said.
See More: “VettaFi Viewpoints: Nadig & Rosenbluth Discuss 2023’s Biggest ETF Investing Trends (So Far)“
Biegeleisen added that the firm’s fixed income portfolio is just a “hodgepodge of Treasuries,” without exposure even to munis. However, he said, they’ve “found gold more attractive in recent months.”
The two also explored challenges in the advisory business, such as different modes of getting paid and doing business.
Biegeleisen will appear on the forthcoming “VettaFi’s Future of Finance: The Real Bond Market” webcast. The virtual event, which focuses on fixed income, will take place on May 24.
Sections: Biegeleisen on Fixed Income
1:07 – Behind 3EDGE’s bearish positions on fixed income
4:36 – Challenges in the current fixed income markets
6:53 – Are we out of the woods with regional banks?
8:47 – Behind the bubble of the debt crisis
11:13 – Why Biegeleisen likes shorter-term TIPS
11:59 – Reaffirming a commitment to gold
14:01 – Inside a defensive, all-equity portfolio
15:00 – Where does the U.S. dollar go next?
16:06 – Pitfalls (and promise) of Bitcoin
17:53 – Inside the realities of today’s financial advice business
Tickers Discussed: BIGB
ETF Strategies Discussed: Treasury ETFs, Bonds, Gold & Silver
For more insights and conversations hosted by Dave Nadig, visit the VettaFi YouTube channel. Send us your thoughts, comments, and feedback to editorial@vettafi.com.