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
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
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
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
Fear of a coming recession? And yet this is the perfect environment for a Logical Invest strategy. Our top performers for the month were the Leveraged Universal Investment Strategy (+19.9%) and the Maximum Yield strategy(+ 10.3%). Even our free Enhanced Permanent Portfolio returned 5% in August. Why? The answer is in the “safe-haven” assets: Bonds and Gold. Just this month, TLT is up by 11%, GLD by 8% while the SP500 lost -3%. Our strategies … Read more
QuantTrader users: Please update your software! See instructions at the end of this newsletter.* Paradigm Shifts Ray Dalio of Bridgwater and “All Weather” portfolio fame has published a very interesting article. Entitled ‘Paradigm Shifts”, he takes a long term outlook and makes a case for gold: “….I have observed there to be relatively long of periods (about 10 years) in which the markets and market relationships operate in a certain way (which I call “paradigms”) … Read more