PentaNews November 2019

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PentaNews November 2019

In October, the US Federal Reserve cut the key interest rate by a quarter of a percent to 1.50% – 1.75% for the third time in three months in order to maintain growth in the USA. Equities rose accordingly and the S&P 500 Index reached a record USD 3,046.

Of the three major asset classes, gold performed best (GLD +2.56%), followed by US equities (SPY +2.21%). Bonds were unfortunately negative for the month (TLT -1.11%), despite a short rise after the interest rate cut.

Our two strategies performed positively so far with High Yield Classic +3.09% and High Yield MiniMax +0.58%.

In October, I synthetically extended the ETFs used in both strategies further into the past in order to study the performance more closely, in particular before and during the 2008 crash. In doing so, I found some optimization possibilities to further improve the overall return.

Meanwhile all our strategies historically had a positive return over the previous 18 months at any time!

Stay happy, healthy and wealthy!

Omar

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