Macro Strategy Intelligence

What We Do

Different assets thrive in different economic conditions. Instead of picking a single portfolio and holding it forever, we rotate into assets that are most likely to perform well given where the economy stands right now.

We combine two ideas: choosing the right assets for the current economic regime, and then rebalancing between them systematically to extract additional returns from normal market volatility — even when individual assets go nowhere on their own.

Selecting Assets Based on the Economic Cycle

Every asset class has conditions where it naturally outperforms — and conditions where it struggles. The Macro Compass identifies where the economy sits by tracking two forces: whether growth is accelerating or slowing, and whether inflation is rising or falling. Those two directions define four regimes. We rotate into the assets best suited for each:

About Volatility Harvesting

Here's a counterintuitive idea: you can generate positive returns from two assets even if neither of them goes up — as long as they move independently of each other and you rebalance between them regularly.

This is called volatility harvesting — sometimes known as Shannon's Demon (named after information theorist Claude Shannon, who demonstrated the math in the 1960s). The idea is simple: when one asset rises sharply, you trim it and add to the one that's down. When they both revert, you've bought low and sold high — automatically. Over time, this disciplined rebalancing produces real gains that wouldn't exist if you had just held each asset and done nothing.