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| Demonstration of the koru/infinity design that an e-portfolio follows: gather, feedback, reflect. (Photo credit: Wikipedia) |
The only portfolio that continues to experience significant drops in their results is the Passive Ultra 3Q. The nature of this portfolio makes it vulnerable to market movements. Should be remembered that this is a cumulative portfolio (which means that every monthyou take a new position) and passive (which means it does not have stop losses orinvestment alternatives).
In this sense, it is very interesting to compare the performance of the various portfolios,especially those with long and short positions with other with only long positions.
As we have been mentioning in recent months, our methodology provides basically two components. First, the portfolio should be flexible enough to include positions longs and shorts (or inverse ETF). The market has shown, in particular from the year 2.000, fluctuations in the valuations of stocks forces us to be "on both sides of the market" if wesucceed in our investments.
We are very active in the market since 1992. We were brought up with the "earlier paradigm". However, we recognize that as of 2000, a new reality moves the stockmarket. This is especially true for personal portfolios, and even for institutional portfoliosthat we are so great.
This reality, for example, makes it difficult for large long-term funds, to have good yields.This despite the huge liquidity that has pumped into the market in recent years. I mentionthis because this flow has allowed these funds to take new positions "average price" of their old positions. However, this has not been sufficient to enhance its profitability significantly.
Our second element is the use of "Stops" in all our positions. This mechanism allows you to boost our profits and minimize our losses. In this special circumstance, the use of "stops" has been very important to get the great results experienced. Please click here to see the behavior of each of these portfolios.
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