Newsletter end of January 2021

For the month of January 2021, the Enhanced Permanent Portfolio account lost -1.8%.
January was a difficult month with all three asset classes declining. Treasuries declined -3.49%, Gold -2.86 and Equity (S&P500) -0.8%. This translated in a loss of 2.4% for the underlying strategy. Option premium income added a positive +0.6% to that loss so that the strategy ended with a loss of -1.8%.
It is quite rare that all three asset classes decline together, because most of the time they show negative correlations to each other and money which flows out of one asset will flow into the other. All three assets declining means that investors go to cash. In general, the save haven assets Gold and Treasuries are still consolidating after the huge jump during the March 2020 Corona crisis and investors are still shifting money into the riskier equity assets.

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