Our top 2018 investment strategies, year-to-date :
- The NASDAQ 100 strategy with +8.56% return.
- The 3x Universal Investment strategy with +5.99% return.
- The Universal Investment strategy with +1.34% return
SPY, the S&P500 ETF, returned +6.32%.
August starts with very much the same market preoccupations as the previous summer months: Fear of a trade wars and questions about central bank policy. The possibility of additional tariffs is holding back international growth and is keeping foreign markets weak, although there were some notable exceptions. The expectation the Fed will further increase rates has been replaced by fear of foreign central banks tightening policy. The Japanese central bank decided against a hike at this time but the possibility of such a move in the near future does raise the question about the Fed’s hand being forced. Further short-term rate hikes could eventually lead to a flattening or even inversion of the interest-rate curve which in turn brings closer the possibility of a future recession.
Emerging markets and Latin America have been hit hard these past months and in July we saw a bounce from oversold conditions: Brazil (EWZ) returned +12.6% while the broad Latin America ETF (ILF) was up +11.2.%. Emerging markets (EEM) was up +3.53%. On the safe-heaven assets side, Gold fell by -2.24% while TLT, the 30 year Treasury ETF showed weakness at -1.43% for the month. ZIV, which we use at our MYRS strategy, was up +5.86%.
This month most of our strategy were slightly positive or remained flat. The leveraged Universal Investment strategy (3x UIS) returned +2.87, the Maximum Yield strategy +1.57% while the U.S. sector strategy +1.05%. The biggest loser was the Nasdaq 100 strategy at -4% being particularly affected by losses in NFLX and FOXA.
Cryptocurrencies bounced up from the critical 6000 levels and touched 8400, giving much needed hope to HODLers before coming back down to 7000 levels.
We wish you a healthy and prosperous 2018.
Logical Invest, August 1, 2018
Strategy performance overview:
Visit our site for daily updated performance tables.
BRS - Bond Rotation Strategy
BUGST – A conservative Permanent Portfolio Strategy
BUGLEV - A leveraged Permanent Portfolio Strategy
GMRS - Global Market Rotation Strategy
GMRSE - Global Market Rotation Strategy Enhanced
GSRLV – Global Sector Rotation low volatility
NASDAQ100 – Nasdaq 100 strategy
WORLD-TOP4 - The Top 4 World Country Strategy
UIS - Universal Investment Strategy
UIS-SPXL-TMF – 3x leveraged Universal Investment Strategy
AGG - iShares Core Total US Bond (4-5yr)
SPY - SPDR S&P 500 Index
TLT - iShares Barclays Long-Term Trsry (15-18yr)