Say Nay to Sell In May
To those who believe in the Sell in May and Go Away adage, the S&P500 has just returned a nice +2.43%. Oops.
Like all adages, they have to be taken with a grain of salt. Apply a similar approach with the financial media who constantly comment and interpret every single tick of the market.
In the end, investing is not about reading the last Fed minutes, OPEC decision or Trump's tweets. Good luck with that. It's about following a process that will act like a GPS, whether it's clear sky or pitch dark.
Actually it's always pitch dark out there. Nobody knows what's coming.
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The Process
So how do these five ETF Portfolios navigate the markets?
First, all five portfolios are purely quantitative, i.e, they rely on a set of rules that is coded and compiled into an algorithm. These rules are based on the most persistent and pervasive market anomaly called momentum.
The benefits of using a quantitative strategy, as opposed to a discretionary strategy, are multiple: no emotion, no guessing and no prediction.
Following a quantitative strategy is a powerful remedy to our well-documented cognitive biases: it reduces the chance of making (very) bad investment decisions.
Second, these portfolios cover all global asset classes. In plain english, it means that no matter where the next bull market is, whether it's in stocks, bonds, REIT, oil or gold, the algorithm will pick it up. As an example, the USDGlobal portfolio has been invested in oil since the end of 2017. Oil is up +13% since.
Finally, they all include a stringent risk management mechanism that has generated so far higher returns with lower risk, producing better risk-adjusted returns.
And all of that at a fraction of the cost of traditional mutual funds.
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The Proof is in the Pudding
Following our process has paid off so far in 2018. All our ETF Portfolios have positive returns and beat their index, ranging from +9.32% for the CADSectors to +0.85% for the CADGlobal:
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Trades for June are posted, subscribers know what to do!
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Free 30-day Trial
Whether your portfolio is managed by a 3-piece suit charging 2.5% a year or by a low-cost robo advisor, why not compare it with our ETF Portfolios? Even better, ask for a free 30-day trial and access the historical trades of all our portfolios. Then decide.
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Direct Access to the Trades
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Thank You
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Talk to You June 29th!
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