That time of the month…..
2020 – 57.5%
YTD for 2021 – We are down by around 2%
For December 2020 – We were up this month by 4.3%
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.
Here is the performance report. Changing the format a bit and including the report in the blog post itself as opposed to a pdf attachment. Click on the image if you want to zoom in.
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
The February allocation will be pretty similar to the January allocation. Distributed between stocks, bonds and gold and a high allocation to “cash”. “Midas” seems to think that the stock market is over valued and has run at a faster rate than it is used to and hence may correct soon. Hence the higher allocation to cash.
This is one of those times where the algorithm is preferring to play it safe by increasing the allocation to cash till it gets a clear indication or direction of where the market is headed.
The weightage on “fundamental” indicators is going down further given that they haven’t really worked these past few months.
