ETF Strategy Research and Strategy Blog: Rotation Strategies

Strategy Changes due to delisting of ZIV and UGLD as of July 2020

Credit Suisse announced recently the delisting of ZIV and UGLD, among other ETN. These ETN will continue to trade on the Nasdaq Stock Market up to and including July 2, 2020. The delisting of the ETNs will become effective on July 12, 2020. We currently employ ZIV in our Maximum Yield Strategy (MYRS) and UGLD in our Leveraged Universal Investment Strategy (3XUIS). We will modify both strategies effective July 1, 2020 as follows: ZIV – … Read more

The Logical-Invest newsletter for June 2020

As many new people have joined in the past weeks, here is a quick recap on How to use our desktop app QuantTrader to cut signals on your own. Team LI reveals personal favorites Please visit our forum as we reveal Logical Invest Team’s own personal allocations! Mixed month for Assets May was a mixed month for asset classes: The S&P 500 advanced +4.8% while long-term Treasuries lost -1.8% and gold gained +2.6%. The Strategies … Read more

Recap: How to use QuantTrader to cut signals

As many new people have joined in the past weeks, here a quick recap on how to use our desktop app QuantTrader to cut signals on your own, and whenever you like. This is useful if you: do not want to wait for us to publish signals and send out emails prefer to trade on a different day of the month want to trade the same day before close using intraday prices To get started … Read more

The “US Market Strategy” or how to invest using a crash-hedged strategy.

There is no better moment to realize the value of a hedged and diversified investment strategy than now during this difficult coronavirus crisis. Logical-Invest has been developing hedged investment strategies for years with the goal of minimizing risk. Since we have been in a bull market for 11 years now, it has been hard to explain why an investor should not invest 100% of their portfolio in equity. Many investors started to believe that markets … Read more

The new always hedged BUG Strategy backtests

New always hedged BUG Strategy backtests The old BUG strategy behavior during the Corona crash: You see that the crash happened in between two rebalancing’s. As we have been in a 100% bull market scenario in February, the March strategy allocation was 40% Emerging market bonds and 20% Convertible bonds. Both are equity like bonds. The inflation protected TIP bond was not a strong enough hedge. As the crash happened very fast, there was no … Read more

The new always hedged Bond Rotation Investment Strategy backtests

sleep well bond rotation investment strategy

The old Bond Rotation Investment strategy behavior during the Corona crash: You see that the crash happened in between two rebalancing’s. As we have been in a 100% bull market scenario in February, the March strategy allocation was 60% Emerging market bonds and 40% Convertible bonds. Both are equity like bonds. As the crash happened very fast, there was no time to switch into a more defensive allocation. The max drawdown was -32% and the … Read more

The Logical-Invest newsletter for May 2020

Back to normal? All strategies came in positive for the month with a range of returns from a low of +2.8% to a high of +14.5% for the Maximum Yield strategy. Year-to-date figures are mixed but reasonable around a mean of -2%. The S&P 500 is down -9% while emerging markets (EEM) are down -19%. Looking at the table above, it does not reflect a world where whole economies are frozen, cities are in lockdown, … Read more

The Logical-Invest newsletter for April 2020

First priority – Keep yourself and your family safe We would like to express our sympathy and support to all the families affected by the coronavirus. We wish everyone good health as it is our most valuable asset. Second priority – Keep your portfolios safe a. The Strategies Below are the performances of our strategies and benchmark ETFs since the start of the year. March felt like a never ending roller coaster ride, both in … Read more

Use Market Volatility to Save Your Portfolio

Many investors are liquidating their portfolios with huge losses. They sell all asset classes from equity to Treasuries and gold. I will explain here a better strategy to cut losses. Below is a chart of our Logical Invest Permanent Portfolio Strategy which invests in the 3 main assets: equity (SP&500), Treasuries and gold. The strategy uses a variable allocation of Treasuries and gold to hedge against equity losses. As you can see in the below … Read more

The Coronavirus Market Crash – Lessons learned

Logical Invest in Bearish Mode Since January At the start of the year, before the CORVID-19 outbreak was known, we updated our strategies to better withstand a possible bear market or large correction. You can read the details here. A Two-Stage Correction In the first stage, hedges like gold and Treasuries worked well. Although the SP 500 took a free fall, the 30-year Treasury ETF went parabolic up as the 10-year yield touched 0.6%. Gold … Read more