Thank you for your kind words, Lucas. The portfolios are designed to target a lower level of volatility, relative to the high level of expected returns. Following this approach has typically resulted in much less volatility and losses than what is typically followed by retail investors. For instance, the S&P 500 has had drawdowns of 45% several times over the last few decades. Conversely, our strategies aim to have less than 15% drawdown even when using 2.2X leverage.
Our approach is based on knowing where you are in the economic cycle and positioning accordingly, therefore, we like to swim with the tide rather than against it. While it may be a "radical" re-thinking of how most people typically invest, it is not radical in its risk parameters.
Thank you for your kind words, Lucas. The portfolios are designed to target a lower level of volatility, relative to the high level of expected returns. Following this approach has typically resulted in much less volatility and losses than what is typically followed by retail investors. For instance, the S&P 500 has had drawdowns of 45% several times over the last few decades. Conversely, our strategies aim to have less than 15% drawdown even when using 2.2X leverage.
Our approach is based on knowing where you are in the economic cycle and positioning accordingly, therefore, we like to swim with the tide rather than against it. While it may be a "radical" re-thinking of how most people typically invest, it is not radical in its risk parameters.
Thank you very much for your detailed reply.
I really appreciate it.
I understand, and make a lot of sense of course..
All Best
L
Awesome content guys, for real. Great models and great macro assesment, couldn´t agree more with your portfolio.
thank you for sharing
Thank you!
I'm always so impressed by the quality of your research,
and very grateful too.
Thank you
I'd have a question about the systematic Alpha Strategy,
make a lot of sense and the results during the time talk for themselves,
but how a retail investor can mimic and mostly be able to stick to let's say a such "radical" construction of a Macro Portfolio ?
(even an hopefully quite advanced and organised retail investor managing a Tactical Portfolio...)
I mean you'll see a lot of up and down, bumps and quite some volatility in your portfolio during the Months,
and even if you know that the macro thesis is right, not always it's easy to stick with your thesis and keep on going...
At least in full honesty this is often my experience.
:)
And I hope that I've been able to express my point clearly.
Thank you very much again
Regards
Luca