October 2020 Monthly Newsletter - Performance Update & ThoughtsSubmitted by Elite Asset Management on October 3rd, 2020
Dear Fellow Investor,
Just like that Q3 has come to a close and we're finally heading into the final three months of 2020. I think most of us will be looking forward to 2021 and having 2020 in the rear view mirror. Most of our strategies followed the S&P down this month. YTD we're easily beating the S&P with only our Conservative portfolio trailing the S&P, which is to be expected. Overall I am quite happy with performance and how the well we've done this year. For our satellite positions, which I manage by using technical analysis, we went long and rode the market up and only recently we went short again, as we get closer to the election. I do expect volatility to tick up and the markets to mostly trend lower the next two weeks.
I don't post too much analysis about the markets as you can turn on any financial show or read any financial webpage for people reciting numbers. However, a few of you might be interested in this type of information and I found the JP Morgan Quarterly Guide to the Markets to be a good source of information. You can view it HERE.
For those that missed it, back in May Folio was acquired by Goldman Sachs and you can read the message from Folio's CEO HERE
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™