Asymmetric Portfolio has given us a 20% return in two weeks. Let's do a backtest.
Let's put things in context
Over the past year, the S&P 500 has risen 22.85%. While this is a staggering return, considering that its average annual return is 7%, our portfolio has made that same return in just 2 weeks.
We have received many, many messages of thanks and we have responded the same to all of them. With the rise in the markets on Monday and Tuesday, this performance has been a one-off and it is possible that the index will return to record highs.
In addition, we have managed to monetize several positions at a 150% yield. All this with a rise in the VIX < 100%, specifically 70%. Looking in the rear-view mirror, we see that there have been 12 rises in the VIX in 30 years.
Believe us, now or later, these returns will eventually come.
This has made many people jump on the bandwagon and has made us rethink the purpose of this subscription. The purpose has been and will be to help many people to earn a lot of money, and this is only achieved by complying with the established plan (do not set goals, set systems and do not focus on the result).
We don't want a lot of subscribers who come and go with the ups and downs of the market. Those types of investors are going to lose a lot of money (and they'll tell us so). We want people who understand the markets and have a system, be it ours or another one.
Because of all this, we are going to raise the subscription price this Friday. We want to avoid having people who get excited about our returns and don't understand what's behind them.
The importance of being invested and a life-changing piece of advice
The biggest failure in investing is chasing past performance. You, me and everyone else have done it. We see in the news that ARKK is earning 150% per year and we are interested in growth funds. Our brother-in-law tells us he made 200% on Bitcoin and we get interested in cryptocurrencies. In all these cases we are paying more for less, just the opposite of the purpose of investing.
If you feel identified it is normal, it has happened to all of us.
Today we are going to make a brief, but a very powerful reflection, so stay tuned.
“THE MARKET IS DRIVEN BY THE FAT TAILS OF THE LEFT”
We have always heard that if you miss the 50 best days of the stock market your returns would be in the negative.
True, but let's do some second-level thinking.
If you take away the 10 worst days of stock market returns for each decade you would have a return of 4,670,630% (since 1930). Yes, I repeat 4,670.630%.
Impressive, isn't it? Now knowing that no one has the crystal ball and that we can not guess those days. Why are we not always in the markets and benefit from those days?
This is precisely what we want to teach our subscribers, the returns in the market are not continuous, they make jumps and very big jumps in some cases. That is why it is necessary not to chase those jumps (returns), but to be prepared for when they happen.
Great investors are made in bear markets, here is an example.