During the month of March, world markets recovered from the February losses. The Enhanced Permanent Portfolio reference account posted a +0.3% gain, while the ACWI was up by +3.16% and Europe up by +0.47%. The Portfolio had a maximum drawdown of only -0.93% in March compared to -6% for ACWI and -8% for the Stoxx600 which shows the high volatility and risk of an equity only portfolio.
Defensive Treasuries were down -5.34%, Gold up +1.27% and Crude oil down -4%. Our short term inflation protected treasury ETF (VTIP) lost 1.3% which substantially reduced the overall March profit, as VTIP is by far the biggest position in our portfolio. However, with a yield which increased from 0.3 to 1.2% these first 3 months and on top of this a redemption for the actual US core inflation, we can be sure to get between 5% and 8% this year from this position.
Your Rational Invest Team
Walter Baumann / Frank Grossmann / Thomas Ritter
Tel +41 79 306 11 60 / Email