Basketball and investing are two very different ball games. But for fun, we asked five of our experts to apply their investment methodologies to their March Madness® brackets. It’s a contest we call Invescology. Who will come out on top?
Basketball and investing are two very different ball games.
But to celebrate March Madness, we wanted to see what would happen if we tried to combine them.
We asked some of Invesco’s experts to apply their investment methodologies to their brackets.
So how did they pick their games, and who will come out on top?
Follow along to find out.
Chief Global Market Strategist
If you follow Kristina’s market commentaries, you know she believes in the power of diversification: Portfolios need some assets that can play offense and some that can play defense. She also believes in the power of teamwork and the importance of excellence.
Kristina’s “Diversified Bracket”
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CEO of Invesco Real Estate
It’s quite possible that this is the only March Madness bracket ever built based on job growth, population density and new building supply. Scott examined the fundamentals of the real estate market in each school’s hometown and based his picks on the strength of each market.
Scott’s “Real Estate Bracket”
Global Head of Public Policy
This bracket isn’t based on an investment methodology. Instead, Andy’s bracket reflects his long career in government affairs. He examined which March Madness schools have the highest number of alumni currently serving in Congress. Then, he looked at the home states of each school—which ones have the longest-tenured senators, and which have the most representatives in the House?
Andy’s “Bicameral Bracket”
Head of North American Investment Grade Credit
It’s been said that defense wins championships. And broadly speaking, bonds are seen as the defensive part of an investor’s portfolio. So Matt picked teams based primarily on their defensive efficiency. In cases where teams are pretty evenly matched defensively, then he looked at offensive efficiency.
Matt’s “Bond Bracket”
Global Head of ETFs and Indexed Strategies
Anna oversees a broad lineup of exchange-traded funds (ETFs). She borrowed a few themes from that lineup to build her “ETF Bracket” this year: Innovation (highly ranked engineering schools), low volatility (teams that give up few turnovers), the “next generation” of talent (star players in their first year), and “equal weight” (teams who have talent across the roster).
Anna’s “ETF Bracket”
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Important information
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NCAA and March Madness are trademarks of the National Collegiate Athletic Association. Invesco is not affiliated with the NCAA. Invesco Distributors, Inc.
This does not constitute a recommendation of any investment strategy or product for a particular investor.
Investors should consult a financial professional before making any investment decisions. This does not constitute a recommendation of any investment strategy or product for a particular investor. Investors should consult a financial professional before making any investment decisions.
All investing involves risk, including the risk of loss.
Past performance does not guarantee future results.
Diversification does not guarantee a profit or eliminate the risk of loss.
Investing in ETFs involves risks including the loss of money and those similar to stocks.
Low volatility cannot be guaranteed.
Fixed-income investments are subject to credit risk of the issuer and the effects of changing interest rates. Interest rate risk refers to the risk that bond prices generally fall as interest rates rise and vice versa. An issuer may be unable to meet interest and/or principal payments, thereby causing its instruments to decrease in value and lowering the issuer’s credit rating.
Investments in real estate related instruments may be affected by economic, legal, or environmental factors that affect property values, rents or occupancies of real estate. Real estate companies, including REITs or similar structures, tend to be small and mid-cap companies and their shares may be more volatile and less liquid.
In general, stock values fluctuate, sometimes widely, in response to activities specific to the company as well as general market, economic and political conditions.
The opinions referenced above are those of the author as of March 14, 2023. These comments should not be construed as recommendations, but as an illustration of broader themes. Forward-looking statements are not guarantees of future results. They involve risks, uncertainties and assumptions; there can be no assurance that actual results will not differ materially from expectations.
