What a wild month January turned out to be. We saw some of the biggest swings in the major markets in a generation, eclipsing the recent Corona correction on the NASDAQ just 2 years ago.
The fund only had two positions taken out all month, both long the markets. The net result of this was a loss of 5.25% on the month. Not ideal after the performance of the last half of 2021, but as we all know, this game is feast or famine and right now this war of attrition is continuing. Where we find a lot of well-developed strategies fall apart in the real world, is when people start chasing their tails in this kind of environment and try to outthink themselves. As such, we are sticking with what we know works, appreciate that times like these are part and parcel with not only Ubique but long term investing in general, and take solace in the fact that looking back over the history and testing, we have seen much worse which has always recovered, some taking as long as 16 months to be at a new high again, but none the less, it did come back again!
So as it stands, we are roughly 11% off our all-time high as of the close of January. We are expecting a choppy year from the markets, as January's performance is usually a good indicator of how the rest of the year will perform. We may see a reversal on the Golden Ratio back to gold at some point, as well the introduction of hopefully more uncorrelated assets such as currencies which will help de-risk the portfolio further and offer opportunities that do not always present themselves in the markets.
Not much more to say at the moment, any developments, as usual, will be discussed at length in the PodCast and we look forward to seeing what 2022 will do for the Fund.
If you have any questions or would like to know more about anything mentioned above, feel free to get in contact with us, and we'll happily have a chat with you about it.
Until next time, stay safe, and swing easy.
For more in-depth analysis, everything is on the website for inspection (www.willowoakadvisory.com/ubique)