Logical Invest strategies performance
For September, the monthly winners were the Universal Investment Strategy 3x Leveraged (+8.1%), the Gold-Currency Strategy II (+5.1%) and the Crypto & Leveraged Top 2 Strategy (+3.8%).
Here comes the Rate (cuts)
As expected, the Federal Reserve lowered its benchmark interest rate by half a percentage point on September 18th, bringing the target range down to 4.75%–5.0%. It is anticipated that another 50 basis point cut will occur later this year, settling the rate at 4.25%–4.50%. Additional cuts may follow in 2025, which could bring the policy rate closer to 3.50% in nominal terms.
Rate cuts are generally market-positive, and considering the typical year-end seasonality, there is a strong case for bullish sentiment. However, the wild card is the U.S. election. While election results might not make a significant difference in the long term, the market is likely to react in the short term—though precisely how is anyone’s guess.
Picking Strategies Based on Intuition
It may sound paradoxical since the purpose of following a backtested strategy is to avoid relying on sentiment or ‘intuition’ altogether. Sentiment, emotion, and intuition often lead to an investor’s downfall.
But what if you “feel” that the market is about to explode higher? Is there a way to express that opinion in your investments without risking ruin? How can you hold yourself back from going all in on NVDA just because you have strong convictions about AI infrastructure? Actually, there is a way.
For instance, if you are feeling very bullish on the equity markets, you can opt for a strategy like the Universal Investment Strategy 2x Leveraged. This strategy is designed to perform well in a market rally while still providing some protection from ruin if things do not go as expected. Even our more aggressive strategies offer a layer of safety through their ‘Hedge’ sub-strategy.
It’s important to note that leveraged strategies and the crypto strategy can, but are not intended to be used as a standalone portfolio. They are designed to be partially allocated, boosting existing portfolios rather than forming the entirety of an investment plan.
If, on the other hand, you are still bullish but anticipate a potential correction, you might consider a more diversified approach, such as the Top 3 Strategies.
We’d love to hear your thoughts in our forum!
The Logical-Invest team.