September 2020 Monthly Newsletter - Performance Update & Thoughts
Submitted by Elite Asset Management on October 3rd, 2020Market Update
Dear Fellow Investor,
What an interesting few months it has been. Our investment strategies have done extremely well and we're beating the S&P500 quite easily, a little over 11%, with our Aggressive strategy. The challenge of being an investor during this time are the sheer number of opinions that we see on a daily basis about the direction of the market. The market has recovered nicely these past few months but then it sold off the before the holiday weekend, and the stories started about how it could do down more. I didn't sell or make any changes because the technicals are still strong. What does give me pause about this market is how most of the S&P gains have been driven by only a few stocks, which have been aggressively bid. We have seen this before however, that doesn't mean that we need to sell right away. I will continue to monitor the technicals and reassess the fundamentals throughout September and then into the Q3 earnings season. During the next few months I'll be publishing some blogs about our investment strategy, and why I feel that it can benefit most investors.
Also, 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 john.eiduk@eliteassetmgmt.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™
Portfolio Manager
847-807-6750
john.eiduk@eliteassetmgmt.com
www.EliteAssetMgmt.com
