That time of the month…..
YTD for 2020 – We are up by 51%
For November 2020 – We were up this month by 5.7%
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.
This month finally turned positive after a negative 3 month period. As I mentioned last month, I think the election results were required for the market to trend one way or the other.
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.
2020 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
December allocation is interesting. In-spite of stocks doing well in November, the model has reduced the allocation to stocks and increased the allocation to gold and bonds. The reason seems to be primarily one of reducing risk. The higher allocation to “cash” also indicates the same.
Once again I am in a situation where my “heart” tells me that stocks will go up further and the temptation is high to interfere!! The “head” continues to rule however; with the brokerage account continuing to follow the model recommendations no matter what!!
Here is how the model views it. Stock market is overvalued and the market has run too fast these past few weeks and is due for a correction. Gold and Bonds have the fundamentals supporting them thanks to the fiscal and monetary policy. Hopefully now that the election results are behind us, the government may finally pass that stimulus package which will significantly benefit both gold and bonds.
