The Logical-Invest monthly newsletter for August 2018

/The Logical-Invest monthly newsletter for August 2018

Logical Invest
Investment Outlook
August 2018

Our top 2018 investment strategies, year-to-date :

SPY, the S&P500 ETF, returned +6.32%.

Market comment:

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 The expectation the Fed will further increase rates has been replaced by fear of foreign central banks tightening policy.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:

Logical Invest Strategy Performance August 2018

Logical Invest Strategy Performance August 2018

Visit our site for daily updated performance tables.
Symbols:

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)

2018-08-01T13:20:34+00:00By |0 Comments

About the Author:

Vangelis has been involved in quantitative research and development since 2007. He blogs under the 'Sanz Prophet' alias. He has built, run and tested literally thousands of trading systems using Matlab, Python, C#, QuantShare and Amibroker and has contributed as a researcher/programmer in academic papers. His quantitative blog has been part of the “Whole Street” quant blog aggregator since inception. He holds a B.A. in Economics & Theater Arts from Cornell University and an M.F.A. in Motion Picture Producing from the Peter Stark Program at the University of Southern California. Before entering the financial world Vangelis worked as a film and commercial director and collaborated with agencies such as Bold Oglivy, Adel Saatchi and Saatchi and clients including Pepsico, P. & G., Hyundai and others.

Leave A Comment