January 2019 Investor Letter
2018 ended with a thud and the worst December stock market performance since 1931. Global equities corrected by -15% in three short months. Technology stocks were taken to the woodshed. Here is a snapshot of the peak-to-trough declines of some of the former leaders of this bull market: Facebook -40%, Nvidia -54%, Apple -37%, Amazon -36%, Netflix -45%, Google -24%, the list goes on. General Electric, a symbol of all that was well with the United States has collapsed by -78% and looks like it is in deep financial trouble.
Meanwhile, the Active Asset Allocator has weathered the early stages of this bear market quite well, delivering a positive return of +1.0% in October, +0.3% in November and +2.2% in December. I expect this trend to continue and accelerate as the bear market progresses. It has been a challenging year and the Active Asset Allocator is off its target annual return by some distance, but when 90%+ of all markets and asset classes are showing negative returns YTD, it just isn’t possible to tack on a +7-10% annual return. However, I am pleased that the Active Asset Allocator has outperformed all other multi-asset funds on the market and at a much lower cost to the investor. Multi-asset funds of all shapes and sizes are struggling to navigate these increasingly volatile markets.
Capital preservation during bear markets and capital growth during bull markets is the name of the game. I think 2019 is going to be a very good year for us and I would like to take this opportunity to thank all of you for your continued support and wish you all a very prosperous 2019. Click here to view the January 2019 Investor Letter.
Chart of the Day
The Active Asset Allocator investment strategy is designed to deliver a consistent level of positive returns over time with a strong focus on capital preservation. I follow a multi-asset investment approach, actively allocating between global equities, bonds, precious metals, currencies and cash. I always invest with the primary trend of the market and do not follow a benchmark. Instead, I manage the market risk for clients. My strategy has returned +10% per annum net of fees since inception. My active asset allocation approach is best illustrated in the following chart.
Technical Trend Indicator Performance History
For more information, please contact Brian Delaney at firstname.lastname@example.org.
ONE2ONE: We also offer one-to-one sessions where we provide an advisory service tailored to suit your individual investment goals and objectives. We show how you can implement your investment decisions in a low cost way and avoid the expensive commissions and management fees typically charged by the investment industry in Ireland.