November 2020 Monthly Newsletter - Performance Update & ThoughtsSubmitted by Elite Asset Management on November 22nd, 2020
Dear Fellow Investor,
Our strategies continue to have a great year even with all the volatility due to COVID and the election. As of 10/31/20, our aggressive strategy was beating the S&P by about 17%. Even with the S&P surging in November we still have a comfortable lead, and we've mostly kept pace with it. I attribute our success this year to building our portfolios with fundamentals and managing them with technicals. This allows us to look at the short and medium term time frames and position our satellite accordingly.
What has surprised me is how resilient this market has been, and it's difficult to make a bear market case with the S&P making new highs back on 11/6. However, this also makes me nervous as I'm seeing the S&P bounce between resistance and support lines, with no strength in either direction after making new highs.
During this crazy time I hope everyone has a great Thanksgiving and are able to enjoy and give thanks to friends and family members that have made getting through this year possible.
Please reach out to me if there are any questions.
I don't believe that as investors we need to be all in the market or out of the market, nor do I believe that we need buy and hold. I now that will offend a lot of people who strongly believe that buy and hold is the only way. Just as in life the truth can often be found in the middle. One of the many benefits of my passive active strategy is that we adjust to market conditions based on price action, and this can happen anytime during the month, not just at month or quarter end. We're long term, medium term, and short term at the same time just in different parts of the strategy and they all must work together. This is the balancing act of my passive active investing philosophy and why my strategies follow a core-satellite approach to investing.
On a personal note I hope everyone is staying safe and taking all the necessary precautions. It's a different world that we're living in and just like my strategies we need to adjust to the changes of the world around us.
As we watch the markets move up and down, it's easy to become emotions however, our strategies are designed to last for decades not days.
The best way to reach me is to send me an email at email@example.com
What is S.M.A.R.T Asset Allocation?
We created a rule-based investment process that is S.M.A.R.T. As the investments are Strategic, helps our clients Maximize Gains, Adapts to current market conditions, manages Risk, and is Tactical.
It's still asset allocation only S.M.A.R.T-er.
Until next month.
John A. Eiduk, CPA, CFP™