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
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
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
How did LI strategies handle the correction Our strategies were hedged during this sudden market correction so they held up well. All strategies outperformed the S&P 500 which is down -9.8% for the month. As discussed in our “2020 investment strategy update” post, a correction with no warning was expected based on the experience from the end of 2018. The solution implemented was upping our algorithm’s allowed allocations to safe heavens as well as diversifying … Read more
Top strategies in January: The Leveraged Universal Investment strategy (3x UIS) up 6.1%. The Maximum Yield Strategy (MYRS) up 4.1%. The Leverged Gold-Currency Strategy (GLD-USD) strategy up 3.3%. Our 2020 strategy outlook and strategy adjustments A reminder that starting January 1 2020, we have implementing several modifications to our strategies to make them less volatile. The biggest modification concerns the Hedge sub-strategy to ensure proper diversification between equities and multiple safe-haven assets. This worked out … Read more
All strategies positive for 2019 Logical Invest 2019 historical strategy performance based on actual signals issued.Last column is the correlation of each strategy to the S&P500. The Leveraged Universal Investment strategy (3x UIS) up 80%. The Maximum Yield Strategy (MYRS) up 54%. Our modified permanent portfolio (the “BUG”) up 11% with less than half the SP500 volatility. The Bond Rotation Strategy (BRS) up 6% with 1/3 the SP500 volatility. Most strategies had a correlation to … Read more
Starting January 1 2020, we are implementing several modifications to our strategies to make them less volatile and more stable. The biggest modification concerns the Hedge strategy. As this sub-strategy is a major part of all of our ‘hedged’ strategies, any change in this sub-strategy automatically affects the strategies themselves. We are also implementing a new limit for allocations between hedge and equity. The equity/hedge allocations will now range from 40%-60%, which makes sure our … Read more
Did you notice a bear passing? There should be a widely available service to search past wall street media headlines, align them with a chart and see how well (or not) they predicted market moves. A few months ago, while the SP500 sat some 8% lower from today all headlines were reading about the yield curve inversion, tariffs and the coming recession. This ‘pessimism’ seems to be over. This month’s favourite headliner comes from Fidelity … Read more
S&P 500 Powers To New Record For the third time in three months, the Federal Reserve lowered its key interest rate by a quarter percentage point, to a range of 1.5% to 1.75%. The main reason quoted was to help sustain U.S. growth despite a slowdown in other parts of the world. The FED did, however signal there would be no further reductions unless the economy takes a turn for the worse. Stocks advanced in … Read more
The retreat of the safe heavens September proved to be a mean reverting month for Treasuries and Gold. Following last month’s +11% and+8% moves respectively, Treasuries corrected by -2.6% while Gold retreated -3.3%. Although the S&P500 returned a healthy 1.95% and is flirting with all time highs, the market has become increasingly volatile and expectations for equities are mixed. The VIX index currently sits at 16 while longer dated VIX futures are closer to the … Read more