Newsletter end of May 2020

For the month of May 2020, the Enhanced Permanent Portfolio account returned net 2.57%.

The Enhanced Permanent Portfolio is still heavily hedged with Treasuries and Gold to achieve the volatility target of 5% due to the negative correlation characteristics of these so-called “Safe Haven” assets. The QuantTrader software continues to recommend an underweight of equities as they still have volatilities of almost 30%. This is still about 6x the maximum volatility or risk compared to our 5% low-risk target. For June, we are continuing the strategy more or less unchanged.

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