The first quarter of the year proved to be a challenging one for many traders outside of the equity markets. The "Perfect Portfolio" which tracks 4 markets was no exception. In the four ETF markets we track, the portfolio was equally split with winners in two markets and losers in two markets.
The following ETF's provided solid returns for the "Perfect Portfolio" in Q1. Both the FXE which tracks the euro, and SPY which tracks the S&P 500, managed to put in solid performances. However this was not enough to offset losses incurred in the GLD which tracks gold and the USO ETF which tracks the crude oil market. Combined losses in these markets were large enough to wipe away any gains for the quarter.
On Friday, Adam is going to go into detail about this hypothetical portfolio and it's conservative strategy. This set-up is "perfect" for those of us who don't want to look at our brokerage accounts every day.
The "Perfect Portfolio" covers 4 ETF's and Adam will look at each and also cover the strategy used to trade them.
We plan to update the hypothetical “Perfect Portfolio” every quarter to show exactly how you can utilize what I believe is a very conservative, but profitable approach to markets. We're using four, very liquid and well known ETF's that I believe are going to be very important in the investment world for the next three years.
The results of the “Perfect Portfolio” for Q4 were as follows: The ETF GLD that tracks gold bullion managed to gain 8.55% for the quarter. Our next ETF, FXE which tracks the Euro, suffered a small loss of 2.9% for the quarter. The star performer for the quarter was USO, which tracks crude oil. This market had a positive return of 8.63%. Our last ETF is SPY, which tracks the S&P 500, and this market put in a very respectable 5.63% return at the end of December.
The average return for the “Perfect Portfolio” for the quarter was 5.13%. This was lower than some other quarters simply because the markets were less volatile. In the future we expect this portfolio to continue to do well and we will be reporting on this blog on a quarterly basis with the results.
If you have any questions on the hypothetical “Perfect Portfolio” and how you can use this strategy with your own account and brokerage company please feel free to contact our office at 410-867-2100. Any one of our professional member relationship team can help answer questions on the “Perfect Portfolio”.
The month of November proved to be the perfect month for the Perfect Portfolio.
Out of the four markets that we track in the Perfect Portfolio, we’ve made money in three of them. To put it another way, the Perfect Portfolio was 75% correct. The biggest winner was our GLD position that tracks gold which gained 12.77% for the month. The next winner was SPY, which tracks the S&P 500 index. It went up 6.06%. Next to that was our position in the FXE which tracks the euro. This market produced a positive gain of 1.99% from November. The only ETF that disappointed us was the crude oil market which we used the symbol USO to track. This produced a negative return of .45%.
All-in-all, the Perfect Portfolio outperformed most other diversified strategies.