All Weather Strategy

All Weather Strategy: The strategy had a lower return than World equity in July, as equity rebound continued. We continue to focus on downside protection with 30% short-term gov’t bonds and 30% gold. Gold has also helped the return of the strategy and was the best performer in July.

All Weather Strategy: The strategy had a lower return than World equity in June, as equity remained strong. Fed can’t rescue the market forever, even if the virus is under control, other issues remain. Continued focus on downside protection with 30% short-term gov’t bonds and 30% gold.

All Weather Strategy: The All Weather Strategy has underperformed World equity, due to the forceful rebound in stocks. We move away from our ultra-conservative equity target allocation but remain cautious and focus on downside protection.

All Weather Strategy: The All Weather Strategy has had a slightly lower return than World equity but at much lower volatility. We’re comfortable with our defensive position with 45% short-term government bonds, 30% gold, and 25% equity

All Weather Strategy: What we’re facing: COVID death versus Economic suicide. More fear, more localization, and more debt. How low can the US market go? Will QE help us out of this situation?

All Weather Strategy: For many investors, the safest bond alternative in times of high volatility and adverse economic conditions is short-term government bonds in their home country.

All Weather Strategy: The All Weather Strategy has outperformed World equity, much due to heavy weights in gold and bonds. COVID-19 remains the biggest, but not the only concern. Our primary aim is to limit the downside; therefore, we prefer defensive assets.