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The Logical-Invest monthly newsletter for November 2015

Logical Invest Investment Outlook November 2015 September and October have traditionally been the most volatile months of the year. This year was no exception. Investors were shaken by sharp declines in the equity markets as volatility returned with a vengeance.  The simultaneous fall in equities, bonds, commodities and foreign currencies have left a lot of portfolios with flat or negative returns for the year. Many investors are now wondering on how to move forward. Students … Read more

The Gold Currency Investment Strategy

goldchart
  • The Gold-Currency strategy trades Gold vs 3 major currencies.
  • It is based on the negative correlation between Gold and the U.S. dollar Index.
  • It is an excellent addition to existing equity or bond portfolios as it holds very little correlation to either.
  • It can be traded using ETFs, Futures or even low-margin/low-cost FX pairs.

The Logical-Invest monthly newsletter for January 2016

Logical Invest Investment Outlook January 2016   Market comment: With December 2015 behind us, we have now ended one of the most challenging investing years. The US stock market ended flat for the year. All other assets like precious metals, bonds, commodities and emerging markets gave negative returns. For the past 20 years, including the 2008 subprime crisis year, we always had at least one asset group going up considerably (10% or more). Here is an … Read more

The Logical-Invest monthly newsletter for February 2016

Logical Invest Investment Outlook February 2016 Market comment:   Equities sold off aggressively in the beginning of the year making this January one of the worst of the last 20 years. The market managed to start a small rebound just in the last few days leaving traders pondering if this is another temporary correction or the start of a bear market. In absence of evidence of a more pronounced global economic slowdown, the recent selling looks … Read more

The Logical-Invest monthly newsletter for March 2016

Logical Invest Investment Outlook March 2016 Market comment: February was another high volatility month, however it now looks like the world markets are slowly recovering. Here is a Year-to-Date chart of the world markets together with the defensive TLT (long duration Treasury) and GLD (Gold) ETFs. Last year, the normal inverse correlation of both TLT and GLD to equities failed to materialize for quite a long time. We had several months where Equities, Treasuries and Gold went … Read more

The Logical-Invest monthly newsletter for June 2016

Logical Invest Investment Outlook June 2016 Our top year-to-date strategies: The Leveraged Universal strategy with 17.1% return. The Maximum Yield strategy with 16% return.  The Nasdaq 100 with 7.58% return. SPY, the S&P500 ETF, returned 3.46%, year-to-date. Market comment: This year, the old saying “sell in May and go away” seems to express many financial writers and investors. The March-April excitement has been replaced by fear and caution: A possible June rate hike by the Fed, the June 23rd British referendum over EU … Read more

The Logical-Invest monthly newsletter for July 2016

Logical Invest Investment Outlook July 2016 Our top year-to-date strategies: The Leveraged Universal strategy with 29.4% return. The Maximum Yield strategy with 24.6% return.  The World Top 4 with 12.6% return. SPY, the S&P500 ETF, returned 3.82%, year-to-date. Market comment: The big event for June was the British E.U. membership referendum. Contrary to widespread expectations, Britain’s vote was in favour of leaving the Eurozone. Anyone trading on the 23rd experienced unprecedented volatility as the VIX first crashed on expectations of the “remain” camp winning and subsequently spiked up … Read more

Correlation – Still the grand lady of Portfolio Diversification

MaxCagr Vol

It has been now 18 months since our post on “The power of diversification: Portfolios of Logical Invest Strategies”. Back then our main argument for diversification using a robust portfolio of several of our strategies was that “diversification is ‘a rare free lunch’, it is well accepted part of modern financial portfolios, and to stay financially healthy it is important not to skip lunch”.

Several new strategies have been published since then, among them the “NASDAQ 100” strategy, the “Gold-Currency” strategy and our “Hell on Fire”, the 3x leveraged Universal Investment strategy. At the same time, we went through the bumpy start into 2016 and most recently the waves created by the BREXIT referendum.

Does our stated hypothesis of formerly presented portfolios still hold true? How have the individual components performed, and most importantly, have they added value through low correlation? Have new optimum portfolios emerged since then?