We believe we are entering a new economic environment which will prove more favorable for managed futures. This is partly due to the ending of quantitative easing as well as differing needs of various central banks, ineffective central bank policy, and the inability of governments to sustain confidence or act prudently.
We are still bullish on interest rates and stocks but are becoming increasingly concerned about the sustainability of the bull market in bonds. We will address this point in the next quarter. It is true we are in the seventh year of a bull market in equities, but there can be other reasons why this market may move higher. We are bullish on the dollar against most currencies and generally bearish on most commodities.