During the month of February, world markets posted again losses due to Putins invasion of the Ukraine. The Enhanced Permanent Portfolio reference account however posted a small +0.22% gain, while the S&P500 lost -3.0%, ACWI lost -3.1% and Europe -3.4%. Defensive Treasuries were down -1.6%, Gold up +6.1% and Crude oil up +9.1%. Beginning of the month we decided to rather have a small position of crude oil instead of the Bitcoin because of the negative correlation of oil compared to equity. Negatively correlated assets are rare at the moment, but we need them to lower the volatility of the portfolio. Our short term inflation protected treasury ETF (VTIP) recovered the 1% loss from January which together with good premium income allowed us to post a positive monthly result.
Your Rational Invest Team
Walter Baumann / Frank Grossmann / Thomas Ritter
Tel +41 79 306 11 60 / Email