Weekly Paid Newsletter 07/18/2021
In this letter, we dare to tell you when we think this recession will come and why you should short the indexes this week. Our Hedge Strategy has a +20.6%YTD performance and -1.12% max. drawdown
We share with you, like every week, the movements that we have made in our portfolio in detail so that you can replicate an asymmetric strategy that benefits from the fluctuations of the markets with extremely low-risk, since at least 60% of our portfolio is found in very low-risk assets (cash, gold, silver) and without giving up a very similar return, even higher than that of the index (REF. $SPY). In addition, below, we explain in detail the reason for each of our movements.
For several weeks, we have been ensuring that the market is tremendously overvalued and several indicators show it. One of the indicators that worries us most today is the SKEW. At the end of June, this indicator registered all-time highs (as shown in the following image), we also warned that this indicator despite not having a clear correlation with the falls at the time that it was reaching highs. If it is true that its maximums are preceded by falls greater than 15% in the coming months. That is why it seems v…