Following the sub-prime crash of 2008/09, global markets dropped in excess of 40%. This resulted in lengthy drawdown periods for those brave enough to ride out the storm, for those nearing retirement this storm may have just been too much. This collapse put many a static portfolio to the sword and destroyed investor confidence for the average Joe.
With the huge collapse in the markets a more adaptive approach has been called for, one which can ride the good times but minimise the bad times. A portfolio that can adapt to trends in the market and produce higher returns at a lower risk than typical static portfolios without the heart wrenching drawdowns.
The goal of producing excess returns at lower risk is achievable and it is the ambition of Elementaryinvesting.com to do so. To give everyone the opportunity to invest using a simple proven strategy that can be rebalanced on an annual basis. Minimising the inconvenience and worry but maximising the reward.
The All Season strategy invests according to recent performance of paired investable asset types that perform inversely to one another. The strategy calls to go long on the investable asset split equally between 1. Equities / Bonds, 2. Gold / Bonds and 3. Real Estate / Bonds.
The Gold Rotation strategy brings about the bulk of investment growth albeit at a slightly higher risk. Its simplicity is its beauty, the strategy calls to go long in Gold or Equities based on recent performance.
The final strategy is the defensive element of our overall portfolio, with an eye to reducing those nerve pulling drawdowns. The benchmark calls for a 50:50 split between Equities and Bonds, this ratio adjusts with recent performance to prevent over exposure in a late 'Bull' markets.
Here at Elementary Investing we have developed an adaptive portfolio which produces higher returns at lower risks to meet the needs of the savy investor. Using Markowitz modern portfolio theory (MPT) along with our proven strategies we have developed a simple investing strategy that can be managed with 15 minutes of your time per year.
Each of our stratergies on their own will produce good results at lower risks, but when we combine them with MPT we can enhance results whilst reducing risk further. Our 3 portfolios have generated returns of 9.43%, 11.48% and 13.5% for our low risk, balanced risk and maximum return portfolios respectively since 1996 despite the 'Dot Com' and 'Sub-Prime' market collapses.
Our portfolio performance has been back-tested using market performance since 1995. Our portfolios have proven successful for nearly 25 years, successfully negotiating significant market crashes without the wealth destroying drawdowns that are normally the result of these events. See the results of long term compounding.
Following the last trading day of the year you will be provided with the percentage asset allocation for the portfolio of your choice ready for you to rebalance in time for the new calendar year. The investable assets will be readily available with very low spreads, this annual trading keeps your costs ultra low.
At the end of each quarter, Mar, Jun, Sep and Dec you will be provided with a quarterly update of portfolio performance. This will detail returns and make comparisons against high profile static portfolios such as Harry Brown's Permanent Portfolio and Bogleheads 3 Fund 60/40 Portfolio.
Each of our portfolios is available on subscription for an annual fee of £25 / €30 / $35. Here at Elementaryinvesting.com we are so confident with our portfolios we promise to refund your subscription if it fails to beat the standard 60/40 portfolio* and guarantee never to raise your initial subscription price.
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