U.S. Instability Protection Plan

As long-term investors, we expect to experience multiple cycles of good times and bad times over the course of our investing lives. But when we look at history beyond a single lifetime, there are longer geopolitical cycles with potentially larger impact.

Note: The information below relies on industry analysis not conducted by Macroclimate. We share it here because it informs our approach to managing assets. The market and economic data is historical and is no guarantee of future results. This information has been prepared from data believed to be reliable, but no representation is being made as to its accuracy and completeness.

The U.S. has been a superpower for 100+ years

Because the history of stock market data does not extend back to a time before U.S. dominance, many investors implicitly assume that this (unusual) recent period is normal.

Indicators of U.S. Decline are Underway

Unfortunately, there is evidence that the United States may be nearing the end of its run of global dominance. While neither the timing nor the likelihood of such a shift is predictable, it is important to consider what this might mean for an investment portfolio and how to protect against it.

Macroclimate’s U.S. Instability Protection Plan

While bonds normally serve to reduce the volatility of a portfolio, history suggests that they could lose nearly all their value in a “changing world order” scenario (at a time when stocks may also be suffering extreme losses).

Macroclimate offers an optional U.S. Instability Protection Plan feature in all of our portfolios. It replaces a portion of the bond allocation with a set of hedging strategies whose goal is to perform well under an extreme decline in U.S. stability.

To learn more about the U.S. Instability Protection Plan feature and/or determine whether it is appropriate for you, please reach out to us at advisory@macroclimate.com.