Normally, we steer clear of touting business through blog posts — however, we feel compelled to communicate with our clients and Liberated Investor tribe during this rather historic day.
Brexit busted global markets today, while Alphavest performed quite well on the contrary!
We have been diligently honoring our indicators. Through extreme year-to-date volatility and Brexit — we can proudly say that rules-based investing and discipline has paid off.
Our most aggressive Model Allocation performed -1.52% today, amidst broad market losses across the board of -3.6% on the S&P 500 to -7.9% on Japan’s Nikkei Index.
Alphavest Models Performance for (6/24/2016):
AV100 = -1.52%
AV60 = -1.10%
AV30 = -0.22%
How did we do it?
VOID International Equities – CHECK
- International holdings are the worst performing asset class, ranked #6 of #6 as measured by relative strength performance — think of it as an arm wrestling contest between the 6 asset classes (Stocks, Bonds, Commodities, Cash, International Equities and Currencies). We’ve been VOID International holdings for almost a year now.
Long Gold – CHECK
- Commodities have made an impressive rally from the #6 spot on the Asset Scale to #2, just last week. We always overweight/invest aggressively in the #1 and #2 performers. Our Gold positions were up between +4.9% and 9.63%, today.
Over allocated in Bonds – CHECK
- Repeat #2; We always overweight/invest aggressively in the #1 and #2 performers. Bonds have been ranked #1 on the Asset Scale since January 2016. Bond Models at Alphavest are up between 4% and 13% YTD.
Did we market-time Brexit? No, quite the contrary. I honestly did not believe that Brexit would happen — and I am proud to admit this, because our model allocations don’t ever reflect what I think. They reflect what our rules and our indicators tell us.
What is more incredible to me is that most of our competitors, other “Robo-Investment” companies that offer low-fee online investing resources, similar to Alphavest — had excessive international holdings. Wealthfront has their most aggressive investors allocated to 50% international and emerging market holdings — Yes, that’s five-zero percent! This bad advisor behavior makes makes no sense — or adhering to the lazy pie chart methodology during these volatile times.
Here was their recommendation for a client with a risk score of 8.5/10 (I didn’t want to use the far end of the extreme, so I picked the 8.5 allocation):
Basically, 42% allocated to international holdings:
This model allocation was down -4.64% today.
Get active in these volatile markets — this is no time for stale pie charts!
Markets take the stairs UP and the elevator DOWN. We suggest you take the stairs!