The Mosaic Global Fund made an estimated 1.39% for the month of November
The Bank of Japan set the tone for the month when announcing a historically unseen monetary stimulus package. This helped stock markets globally to a continued strong recovery. Stock markets where also supported by the weakening oil price which hit a four year low after the long awaited OPEC meeting failed to deliver any good news in regards to their planned output. The situation in Europe is the same as previous months where markets are trying to evaluate what the, European Central Bank (ECB), is planning in regards to new interventions. This has continued to push interest rates lower.
The Mosaic Global Fund made money in bond markets during the month but the biggest winner was our allocation to Nasdaq 100 which continues to be one of, if not the strongest stock market in the world currently. We continue to see the benefits of our Trend and Momentum Filters over the last few months which have helped us to over allocate towards bonds during the recent volatility but still be able to extract returns from the strongest stock markets. This has led to outperformance compared to the stock market over the last many months with a much reduced volatility.
In discussion with adviser and investors over the last few weeks and months there are a couple of core concerns that investors have. What shall we do with stock market allocations after the last few years of strong stock market performance, and is the bull market in bonds sustainable? Is this on your mind too? Please drop us an email on the email below and let’s have a chat about it.
So what are Cardea’s views on the above questions? Being a quantitative Multi-Asset fund we have the benefits of having a strong and robust systematic investment framework that will guide us through turbulent times – no emotions involved. That includes dealing with a potential reverse in the current equity trend, a reverse in the bond trend, but it could also mean for example to be able to get back into gold or emerging markets at a favorable right time over the coming months in case these assets starts to move up again.
Did you know that markets globally tend to trend up 70% on time on average and therefore down 30% of the time? This would mean that during any 10 year period, on average, you should be in cash 3 years if you hold mostly stocks in your portfolio. Simplified we can say that most, if not all, of returns we can make from markets are extracted when markets are up-trending. Having a truly global exposure gives us more exciting potential return streams or return generators. When adding our internal Trend Filter which exits assets that are entering down trends, we can benefit from profits most other investors would not, and this makes us very different to most other opportunities available in the market places. The Mosaic Global Fund could technically go into 100% cash if this were to be required by market developments.
We would like to show you that following trends of markets and in addition investing with the help of price persistency, buying the strongest performers over and over is the way to invest. This might all sound a little bit technical – it isn’t really that complicated. We are more than happy to help to break it down for you in a few easy steps, and we feel very comfortable that you will quickly see how important it is to, as a starting point, be aware of trends in global markets.
Please get in touch on firstname.lastname@example.org, or give us a call on +352 202 033 27, to find out more. We look forward to speaking with you soon.
To Your Investment Success!
Per-Olov Jansson & the Cardea Investment Team