Technical Analysis Of The Markets

Executive Summary:

2018 ended with a thud and the worst December stock market performance since 1931. Global equities corrected by -15% in three short months. Technology stocks were taken to the woodshed. Here is a snapshot of the peak-to-trough declines of some of the former leaders of this bull market: Facebook -40%, Nvidia -54%, Apple -37%, Amazon -36%, Netflix -45%, Google -24%, the list goes on. General Electric, a symbol of all that was well with the United States has collapsed by -78% and looks like it is in deep financial trouble.

Meanwhile, the Active Asset Allocator has weathered the early stages of this bear market quite well, delivering a positive return of +1.0% in October, +0.3% in November and +2.2% in December. I expect this trend to continue and accelerate as the bear market progresses. It has been a challenging year and the Active Asset Allocator is off its target annual return by some distance, but when 90%+ of all markets and asset classes are showing negative returns YTD, it just isn’t possible to tack on a +7-10% annual return. However, I am pleased that the Active Asset Allocator has outperformed all other multi-asset funds on the market and at a much lower cost to the investor. Multi-asset funds of all shapes and sizes are struggling to navigate these increasingly volatile markets. 

The Active Asset Allocator is currently positioned 5% global equities / 20% EU government bonds / 15% inflation linked bonds / 30% precious metals / 30% cash.

Please feel free to share with anyone you think may be interested in learning more about the Active Asset Allocator investment strategy. Thanks in advance.

Gold Trader has had a quiet year. I continue to be patient in looking for the next set up. Gold Trader and Chart of the Day updates will resume again shortly.

Brian Delaney, CFA

Director, Secure Investments

Tel: +353 86 821 5911

Website: www.secureinvestments.ie

Email: [email protected]

LinkedIn: Brian Delaney, CFA

Twitter: @briandelaney