This week, Rusty Vanneman and Nick Codola talk with Fritz Folts, Chief Investment Strategist at 3EDGE Asset Management. In this episode, we discuss politics, the potential for an October surprise and what an October surprise could mean for the global economy. In addition, we take a closer look at what these risks might mean for stocks and bonds as well.
This week on Weighing the Risks we are joined by Fritz Folts from 3EDGE Asset Management. Fritz has over 20 years of experience at the investment committee level in the investment management industry. He was one of the co-founders of 3EDGE Asset Management, where he serves as the Chief Investment Strategist and Member of the Investment Committee.
Prior to 3EDGE, Fritz was one of the first team members at Windward Investment Management, a pioneer in constructing globally diversified portfolios utilizing index Exchange Traded Funds (ETFs). After the acquisition of Windward by Charles Schwab in 2010, the name of the firm was changed to Windhaven Investment Management. Fritz became responsible for distribution of Windhaven's investment solutions throughout the entire Charles Schwab nationwide retail branch network. He and his team raised over $15 billion in new assets under management. Later, Fritz was named Chief Investment Strategist at Windhaven. He began his career at The Boston Company, where he ultimately served as Vice President, and Director of Global Funding for the then-newly-formed Boston Safe Deposit & Trust Co. (U.K.) Ltd., in London, England. Fritz received his B.A. with a major in Political Science from Connecticut College and his MBA from IESE (Instituto Estudios Superiores de la Empresa), a bilingual Spanish - English MBA program in Barcelona, Spain. He is the former Chair of the Board of Trustees at Connecticut College and now serves as an Emeritus Trustee. In addition, Fritz currently serves on the Investment Committee for the Connecticut College endowment fund and the Investment Committee for the Umbrella Center for the Arts in Concord, MA. Fritz and his wife Cathy live in Concord, Massachusetts.
Key Takeaways
Quotes
[06:06] ~ “We [at 3EDGE] look at risk a bit differently, because we believe that incidence of extreme market events occur more often than you might anticipate if you use standard risk management models. [This is] because those models tend to employ normal distribution, or bell curves, to manage risk…We consider the global markets to be a complex system of interrelated variables and if you have that philosophy, or premise, then you would not use a normal distribution.” ~ Fritz Folts
[18:58] ~ “So, in terms of [October surprises] losing their potency, yeah I do think that to the extent the public has become almost numb to extraordinary events in the world…it just seems that the nation and the electorate is so divided, with each side so firmly entrenched in their camps, that [an] October surprise would almost serve to just strengthen each sides commitment to their own candidate…particularly in the presidential election.” ~ Fritz Folts
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