January 1, 2019 to January 1, 2023.  In 2022, when all global assets sold off in unison, we almost exactly tracked the S&P-500, which is unusual since we usually beat the S&P-500 in bear markets.  Going forward, we will no longer hedge via using extended-duration Treasury-bonds (this is exactly what hurt our performance in 2022); we will utilize other measures: shorting high-beta stocks while going long low-beta stocks.  This acts like a short of the market but with minimal downside when the market is going up counter-trend.  This method works really well in a world where inflation will become more problematic.  So, it helps to strongly protect during bear markets, yet gets out of the way during counter-trend rallies… a great solution to a new inflationary problem.  [SEE CHART AT BOTTOM OF THIS PAGE.]

 

Moderate Portfolio

This portfolio is fully diversified, lower in risk, is funded and it moves in real time.  Chart shown with all fees already extracted, including the management fee.  

 

This is how our new hedging technique would have protected client accounts during 2022.  The hedge is in BLUE (up 35%) and the S&P-500 is in RED (down 20%).  This has been watched in real time for two decades and it has worked equally well during every presenting bear market and now (going forward) is the time to start utilizing this method.