On April 2, 2025, one of the largest market shocks since 2020 hits financial markets. Out of left field, President Trump announces punitive tariffs left and right, and most financial assets begin bleeding. In the desperation, investors look for a safe haven. Ironically, trend following—long considered a source of crisis alpha—experiences one of its worst drawdowns in history.1 Whoomp, whoomp. The outflows begin.
What follows could not have been more beautifully scripted. Gold rises, the dolla...
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