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Welcome to Arrow Insights

Arrow Insights is a research firm with a focus
on macro-economic factors that support both
fundamental and technical analysis. We believe
that theoretical research is most useful when it
can actually be applied to tactical trading and
asset allocation strategies.


Arrow Insight Indexes

AI Announces Reconstitution Postponement for the AIQVM Index - July 2020

A.I. Managed Futures Volatility Index

The A.I. Managed Futures Volatility Index
(AIMFV) is a long/short/flat diversified
managed futures index. 

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InFocus

Tactical Income –
Liquidity & Interest Rate Risks

January 13, 2021

Since August 4, 2020, higher inflation risks have lifted bond yields—the U.S. Treasury 10-year T-note yield has climbed from 0.51% to 1.13%. Over the last 12 months, lower bond prices have hindered balanced portfolios at a time when stocks are extremely expensive and exposed to remarkably high liquidity risks that could exacerbate a run-of-the-mill equity correction into a severe and quick decline (Figure A, Appendix).

Dorsey Wright Asset Management’s Tactical Income Model (DWATI) potentially hedges losses within a traditional portfolio (TRAD64) with 60% held in the S&P 500 and 40% in the U.S Barclays Aggregate Bond Index (Domestic Bonds). DWATI bested TRAD64 and domestic bonds by 2.2% and 11.9% over the last 12 months (Figure 1), while besting bonds by 30.4% and lagging TRAD64 by -22% in the last five years (Figure 2).


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