Trend Investing Needs Better Signals, Not Different Markets
The article argues that inflation, geopolitical fragmentation, and concentrated AI-driven markets make directional strategies more valuable. It suggests systematic trend-following approaches can complement equity exposure, especially during sustained market stress. The focus is on finding actionable signals while preserving liquidity rather than shifting to alternative markets.
The article appears in Investing Strategy/Portfolio Strategy and is dated Oct 14, 2026. It is authored by Sharat Kotikalpudi for AllianceBernstein, described as a research-driven investment firm serving private clients, mutual funds, and institutions. The page carries many ETF ticker tags.
Its summary states that inflation, geopolitical fragmentation, and concentrated AI-driven markets increase the importance of navigating directional moves. Directional systematic strategies, including trend following, may complement equity exposure during sustained market stress. Geopolitical tensions are reshaping trade and investment flows. The author stresses seeking actionable signals while preserving liquidity.
Investors, retirees, pension funds, and savers with equity exposure may be affected if trend-following strategies become more common. Advisers could use such signals to manage drawdowns during inflation shocks or geopolitical disruptions, potentially smoothing returns but also adding complexity and costs. Broader market liquidity may be influenced if systematic strategies react quickly to price trends.