It's been a trying couple of months with COVID-19 pushing the markets off a cliff, only to see them restore almost 70% of its price again. Compound this with the extraordinary stimulus packages which have been made available, oil seeing negatives numbers and GDP shrinkage and unemployment levels never seen before and you'd be forgiven for not having a clue what is going on.
It is during times like this, that it is ever more important that we stick to our systems and trust in the process. We have circuit breakers in place for large black swan events on the downside and systems in place to maximise the upside. This, over the long-term we believe will result in a market beating performance, which for the long-term is really all that matters. March triggered one of our circuit breakers and as such one of our strategies which would have been long the markets in April stayed entirely in cash. Our Golden Ratio strategy continued to favour gold over the markets, and the Seasonal Sector Rotation strategy had us holding financials which have benefited throughout most the month from large stimulus injections from the US government. The result was adding 11.86% to the portfolio in April, even with a third of the capital in cash throughout.
This brings our YtD figure to -4.10%. Stacked up against a buy-and-hold strategy, Ubique is almost twice better off. To see how each individual strategy performed, please visit our website, www.willowoakadvisory.com/ubique
Looking forward, after our end of month re-balancing of the portfolio we will be holding bonds, going long gold and short platinum. In addition, we will be trialling a new test execution for the portfolio using Spread Betting as the method. We are exploring this option, as it makes the usually prohibitive instruments freely available to UK and EU investors and profits are 100% tax free! This will be done with IG (https://www.ig.com). If successful then we will be able to bring this fully to market to anyone who may be interested.