Newsletter end of April 2020

For the month of April 2020, the Enhanced Permanent Portfolio account returned net 6%.
Throughout April, we maintained our basic strategy, keeping the equity component very low. Earnings are a result of the reduction in volatility (after the peak during the crash). The optimum allocation calculated by QuantTrader remains cautious in May, investing primarily in Gold and Treasuries. The bull market of the last few weeks was mainly driven by a few tech giants. An end to the Corona pandemic is not in sight and the economic implications are uncertain.
We will therefore maintain our low equity exposure for May while our option based investments will profit from high premium decay due to the still historically high volatility levels.

Your Rational Invest Team
Walter Baumann / Frank Grossmann / Thomas Ritter
Tel +41 44 515 48 00 / Email