That time of the month…..
2020 – 57.5%
YTD for 2021 – We are down by around 7.9%
For February, we were down by 6.1%
For ease, I will continue to refer to the results of the Risk Parity – Platinum model since that is what constitutes majority of the subscribers. The gold and silver subscribers would have seen a proportionately lower risk and hence a lower return. Gold performance would be 2/3rd the Platinum performance. Silver would be approximately 1/3rd.
2021 Performance Statistics
Monthly Performance
The annual returns are cumulative, not additive. You need to multiply the returns of each month and not add them up.
Weather Conditions and Looking Forward
We are down by 7.9% YTD despite being in almost 50% cash. The bond markets and the gold markets falling haven’t been kind to Midas performance
Will the portfolio go down further before it recovers? Don’t really know. Midas continues to play the hedge between stocks, gold and bonds while keeping a higher allocation to cash. It is reducing risk further by changing the allocation to lower volatility ETF equivalents for stocks and bonds.
This has happened before multiple times when stocks, bonds and gold all fall at the same time. It is usually an indicator of a significant move in the stock market….one way or the other. 70% of the times it has been down. 30% of the times up.
I know a number of clients who joined during the second half of last year are disappointed with the returns. Sorry about that, but I am not changing the algorithm. This is a slow moving algorithm and does not do well when I change the frequency at which it operates.
I am working on options for those of you who don’t like the slow nature of the algorithm and want more action. The only way to do that is to reduce the emphasis on fundamentals and put more emphasis on the technicals. More on that in the next blog.
