Newsletter end of December 2022

Since the end of August our portfolio was only a private portfolio anymore and we did not continue to post monthly return updates. However, we decided to post a final performance chart for our portfolio until end 2022.

The 2022 performance was -7.43% compared to -18.2% for the S&P500 (SPY) and -18.4% for the World (ACWI). 2022 was a very difficult year for hedged strategies like our well diversified Permanent Portfolio strategy, because all asset classes including the normally “safe haven” assets Treasuries and Gold did not perform well.

2020 during the Covid crash Treasuries allowed us to nearly totally avoid the crash. This time only the very good premium income of our option based strategy allowed to damp the bad performance of all asset classes.

In the second half of 2022, we began to select the 4-5 best US sectors on a monthly basis using options, instead of just investing right away in the S&P500. The sector rotation strategy was one of the best performing strategies in 2022 for our sister company This sector rotation helped a lot, as some sectors like the energy sector performed considerably better than the market. It looks like sector or even stock picking will become important again for the future.

As said before, our portfolio is not continued with public monthly updates on this website anymore. However, if you are interested in our strategy, then do not hesitate to contact us by phone or email.

Your Rational Invest Team
Walter Baumann / Frank Grossmann
Tel +41 79 306 11 60 / Email