Trend-Following: Why Now? A Macro Perspective

AQR

Research

17 Pages

AQR Capital Management explains why trend following may be well suited for a world where macro volatility is back. It argues the 2010s were unusually calm, so investors anchoring on that decade may be underestimating future opportunity and risk. The note points to 2022 as a reminder that traditional diversification can fail when stocks and bonds struggle together.

Key Takeaways

Volatility regime shift: The authors expect bigger, longer market moves to remain common in the near term.
Diversification under stress: Trend strategies aim to help when balanced portfolios face simultaneous equity and bond pressure.
Behavioral staying power: Process tweaks can make trend exposure easier to hold through inevitable rough stretches.
VIEW FULL REPORT

Join our newsletter to have all of this content + Exclusive Newsletter Bonus Content delivered to your inbox every week

Related Content

Alternative Assets
State of Startups 2025
Feb 2026
Market Outlooks
2026 U.S. Real Estate Market Outlook
Feb 2026
Alternative Assets
Alternative Investments: Outlook 2026
Jan 2026

The information contained in this communication is of a general nature for informational purposes only, and does not constitute financial, investment, tax or legal advice. The information contained within this communication reflects the opinions of those referenced herein, and do not reflect the opinions of The Idea Farm, L.P. and its affiliates. Such opinions expressed herein are as of the date of production and are subject to change at any time without notice due to various factors, including changing market conditions or tax laws. Where data or information prepared by third parties is presented, no representation, warranty, or undertaking, expressed or implied, is given to the accuracy or completeness of such information by The Idea Farm, L.P. or any other person. While such sources are believed to be reliable, The Idea Farm, L.P. does not assume any responsibility for the accuracy or completeness of such information and does not undertake any obligation to update the information contained herein as of any future date. Any links to third party websites are offered only for use at your own discretion. The Idea Farm L.P., and its affiliates, are separate and unaffiliated from any third parties listed herein and are not responsible for their products, services, policies or the content of their website. All investments are subject to varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy or product referenced directly or indirectly in this communication will be profitable, perform equally to any corresponding indicated historical performance level(s), or be suitable for your portfolio. Past performance is not an indicator of future results.

Scroll to Top