There is no doubt about it 2015 will be viewed as a very tough year for most investors. Most of the large hedge funds were not immune to losing money with many of them going out of business. This is in sharp contrast to the easy money years of 2009 through 2014 when the Fed was dropping rates and printing money like it was going out of style.
Today I'm going to be looking at the World Cup Portfolio and see how it performed quarter by quarter market by market. The World Cup Portfolio was not immune to the challenges of 2015, but it did finish the year in the black.
While the World Cup Portfolio showed a positive return at the end of 2015, it was the lowest return that the portfolio has had since its inception. The 19.4% return for the year while positive and still very respectable by most measurements was somewhat disappointing by our standards.
So let's go through the markets quarter by quarter and see how the WCP was able to show a positive return when many others didn't.
Q1 of 2015 proved to be an excellent start for this portfolio and showed a return of over 23%. The big winners in this quarter were crude oil that showed a profit of $10,010 and gold, the second biggest winner showed a profit of $6,420. (you only trade one futures contract per market). The other four markets showed losses for the quarter of $1,400 for corn, $1,275 weeds $1,750 for soybeans and $360 for the dollar index. That's a total profit of $11,645 or a 23% return on invested capital for the quarter.
Q2 proved to be a different animal and the losses in corn and soybeans in Q1 were made back quite dramatically with wheat being the top performer with a gain of $4,050. The big losses for the quarter were in crude oil, gold and the dollar index all of which contributed to a net loss for Q2 of $11,803. This basically put the WCP back to the beginning of the year and that was very disappointing. Now this is where most investors would throw in the towel. But here is the secret, if you play the odds and you consistently go to the table to trade the Trade Triangles in the World Cup portfolio you will make money, that I'm convinced of it.
Q3 proved my thesis of going back with a game plan and the same trading strategy as this quarter showed a net gain of $8,257 for 16.5% return on capital. The biggest winner for the quarter was crude oil that showed a profit of $7,010. The biggest loser for the quarter was the dollar index that showed a loss of $5,235. The other good news about Q3 is that the WCP made money in five of the six markets traded.
Now let's take a look at Q4.
Q4 was once again a difficult time in the grain markets and it showed with losses in corn, wheat and soybeans. Those losses were eradicated with nice gains in crude oil, gold and even the dollar index that showed its first profit for the year in Q4. The results in Q4 showed a net profit of $1,599.50 for a gain of a little over 3% for the quarter.
We have been tracking the World Cup portfolio eight years and every year it has made money. Here are the past years results:
Sometimes we have members who want to cherry pick the numbers and just trade one of these markets. I don't really suggest that. For example, if you just traded the dollar index using our program you would've lost money if on the other hand you just traded crude oil you had an amazing profit for the year. The bottom line is no one tells you at the beginning of the year exactly which markets are going to have the big moves and that is why you need to diversify your investments which in turn lowers your risk profile.
The rules of the World Cup portfolio are clearly laid out every day for you and it shows you when to get in and when to get out of the markets there are no gray areas.
If you decide you'd like to follow the World Cup portfolio you can do so right here.
Every success with World Cup portfolio and remember to stay strong and be disciplined in your approach to every market.
Every success with MarketClub,
Adam Hewison
President, INO.com
Co-Creator, MarketClub
