The Power of Multi-Asset Investing

• Gold led all major asset classes in 2025 with a 64% return, while Japanese, European, Chinese, and emerging market equities all outperformed the S&P 500 and NASDAQ
• 3EDGE's multi-asset strategies helped protect against the S&P 500's nearly 20% decline from mid-February through early April during 'Liberation Day' tariff announcements, then participated in the second-half rebound
• The firm's 'Seasons of the Market' framework emphasizes that traditional U.S. stocks and bonds are appropriate for only half of a full market cycle, necessitating exposure to hard assets, commodities, and short-duration Treasuries

Summary: The Power of Multi-Asset Investing

Key Takeaway: 2025 demonstrated the value of multi-asset diversification as traditional U.S. equity-focused strategies underperformed a broader approach.

Performance Highlights:

• Gold led all major asset classes with an exceptional 64% return in 2025
• International equities (Japanese, European, Chinese, and emerging markets) outperformed both the S&P 500 and NASDAQ for the first time in years
• 3EDGE's core multi-asset strategies delivered double-digit returns despite challenging conditions
• The S&P 500 experienced a nearly 20% decline from mid-February through early April 2025

Market Context:

The downturn was triggered by the Trump administration's "Liberation Day" tariff announcements, though markets rebounded in the second half after extreme policies were scaled back. This volatility challenged the recent assumption that heavy S&P 500 allocation was sufficient.

Investment Philosophy:

3EDGE promotes its "Seasons of the Market" framework, arguing that different asset classes outperform during different economic cycles. The firm advocates moving beyond traditional 60/40 U.S. stock-bond portfolios to include:

• Hard assets (gold and commodities)
• International equities
• Short-duration U.S. Treasury securities

Strategic Implications:

Multi-asset diversification provided both downside protection during the spring volatility and participation in the subsequent recovery. The firm argues that traditional stocks and bonds are only appropriate for half of a full market cycle, making broader diversification essential for managing risk while generating attractive risk-adjusted returns.

The article suggests conditions favoring diversified portfolios may persist through 2026 and beyond, particularly given ongoing macroeconomic and geopolitical uncertainties.