Vincent Deluard – Know the Difference Between a Trade and an Investment

<p><strong>BIO: </strong>Vincent Deluard is the global macro strategist for StoneX Group Inc., where he authors weekly commentary on global macro topics and advises pension funds on asset allocation.</p><p><strong>STORY:</strong> Vincent decided to overleverage an ETF during the financial crisis of 2008 in the belief that the economy would bounce back. Interest rates, however, fell, and he lost 70% of his investment.</p><p><strong>LEARNING:</strong> Take into account falling yields and falling inflation. Understand the difference between a trade and an investment.</p><p>&nbsp;</p><blockquote class="ql-align-center"><strong>“The more volatile something is, the more likely it will lose its value over time.”</strong></blockquote><blockquote class="ql-align-center">Vincent Deluard</blockquote><p>&nbsp;</p><h2>Guest profile</h2><p><a href="https://www.linkedin.com/in/vincent-deluard-cfa-90950b1/" rel="noopener noreferrer" target="_blank"><strong>Vincent Deluard</strong></a> is the global macro strategist for <a href="https://marketintel.intlfcstone.com/MIPublic/Landing" rel="noopener noreferrer" target="_blank">StoneX Group Inc</a>., where he authors weekly commentary on global macro topics and advises pension funds on asset allocation. Prior to joining StoneX Group Inc., Vincent served as Europe strategist for Ned Davis Research, where he created the firm’s Europe product. Before that, Vincent was executive vice president for TrimTabs Investment, where he headed the firm’s quantitative research. Vincent is frequently quoted in the Financial Times, the Wall Street Journal, and Barron’s and is regularly on Bloomberg TV and CNBC.</p><h2>Worst investment ever</h2><p>During the great financial crisis of 2008, Vincent had just started working and decided to get into investing. The interest rates at the time were stable at 5%—which seemed like a good number to Vincent.</p><p>Then in a matter of a week, the interest rates went all the way to 2.5% in the wake of the Lehman Brothers panic. As the interest rates went down, bond