The month of November 2021 closed on a down note with high volatility because of the new Omicron Covid variant. Altogether, the Enhanced Permanent Portfolio reference account lost -0.38% while the ACWI lost -2.31% and Europe lost -2.64%. Defensive Treasuries were up +2.77% and Gold down -0.69%. As a complement to our small Gold position, we decided to add small amounts (<5%) of Bitcoins to the portfolio. Instead of buying Bitcoins right away we sell 1 month ATM BITO Put options. The premium of these options is about 10% per month, so this way we can get Bitcoins within one month with a 10% discount or we get a nice premium. We think that keeping a small percentage of Gold and Bitcoins makes sense because of the low correlation to the other assets and as a protection against inflation. The main asset to fight inflation is VTIP a short-term inflation protected Treasury which should return about 5% per year.
Your Rational Invest Team
Walter Baumann / Frank Grossmann / Thomas Ritter
Tel +41 79 306 11 60 / Email