That is how a lot our Lengthy-Time period Portfolio has gained since our March 18th evaluate and it is solely April ninth! We solely had $634,785 price of positions on the 18th and now they’re $730,400 (the remaining is over $1M in CASH!!!) so that could be a utterly insane acquire of 15% in 3 weeks. That is an annulized return price of 260% – do you actually suppose that is sustainable?
I do know we preserve making an attempt to money within the LTP however then we preserve deciding the positions are excellent and we actually cannot argue with the outcomes however the entire thing merely has to break down sooner or later. It is the market that’s inflicting this idiocy – our methods simply eggagerate the positive factors as we use choices to leverage the upside momentum and, for the reason that broad market by no means goes down and we are inclined to make smart worth picks – we make outized positive factors in our digital portfolios.
Good points are, in fact, pretty on paper however it’s a must to ensure you preserve them and that is the trick because the Worry of Lacking Out on a contiued rally tends to maintain us from sensibly cashing in our positive factors. We’re 2/3 CASH!!! within the LTP and most of our portfolios so think about what we might be making if we had been gung-ho bullish however we realized our lesson in 2000 and 2008 that rallies can finish in a snap and you may’t merely unwind your positions on the first trace of hassle – that is simply not the way in which it really works.
So we hedge utilizing our Quick-Time period Portfolio (STP) and, as I discussed on Wednesday, that $200,000 portfolio was down 3.1% and now, with the prolonged rally, it is down 15.2%, with the rally knocking us down by about $26,000 so the web acquire of our paired portfolios is “solely” about $70,000 for the month.
What meaning although, is that the hedges are on gross sales and, since we simply make web $70,000, we should always actually be placing a portion of that cash to work shopping for extra hedges. The STP positions we have now in the mean time gave us about $500,000 price of draw back safety however now we have now $95,615 in further positions to guard,…