The Vig Company Posts March Results For the V2 Model. Up 9.24%. Up 12.09% YTD.
March was one of the worst months for the S&P 500 since 2008. During March, we were short the market 73% of the month. Long the market 0% of the month and cash 27 percent of the month. Here are the results compared to our benchmark of the S&P 500 index (SPY).
December 31, 2019 V2 Model $10,000
January 31, 2020 V2 Model $10,341 +3.41% SPY -.16%
February 29, 2020 V2 Model $10,261 -.77% SPY -8.41%
March 31, 2020 V2 Model $12,209 +9.24% SPY -12.49%
Year to Date: V2 Model +12.09% SPY -19.45%
March was a volatile month. A strong sell-off drove the S&P 500 down more than 33% from its peak. Economic uncertainty and shutdowns from the Coronavirus pandemic continued to impact the market in a significant way. Unemployment spiked. Significant monetary and fiscal policy programs were implemented mid-month. which helped stabilize the market somewhat into a rebound at the end of the month. In short, it was crazy.
We beat our benchmark of SPY by over 21%.
Year to date we are beating our benchmark of SPY by over 31%.
The model performed exactly as expected.
To start April, we are allocated to a neutral all-cash position. We expect the market to be volatile and concerning. Some short-term technical aspects have improved. But, the trend is still neutral to down on our timeframe. As conditions change in a meaningful way, the model will reflect it. We will update our allocations at that time.
About the V2 Model.
On January 1st of 2020, we launched and are testing a new investment model. It is called VEGA VALEOR (V2).
We have researched and developed a pool of common and popular ETFs. We will select which ETFs to invest in based on market conditions and our short-term, medium-term and long-term charts. We will also model asset class ratio behavior for our decision-making process. Leverage will be used when appropriate and we will short the market in a downturn. If no investments meet our rules, we will go to cash. We will change holdings at any time during the month.
The investment picks may be in large-cap growth, treasuries, leverage, derivatives. We may short the market or go to cash. Holdings may include SPXU, SDS, SH, SPY, SSO, UPRO, TLT, BTAL, TQQQ, SQQQ, or cash at any time.
VALEOR should be considered a volatile and risky investment opportunity. There is no guarantee of performance.
We may make the V2 model available in newslettter form for a small fee at some point this year. Please let us know if you are interested.
Why the name VEGA VALEOR?
VEGA is a bright star. (Vega is also my nickname.)
The definition of VALEOR is “to be strong, to be well”. We work on a relentless, ongoing basis and endeavor to “be strong” and grow in upward markets. We also strive “to be well” and protect capital in down markets.
Chris Vig is president of The Vig Company and is an investor, artist, author, business consultant and former CEO living in Monona, WI. This article is for entertainment purposes only. We may own, buy, or sell any security listed here at any time. Do your own diligence when investing your hard-earned cash. Follow The Vig Company on Facebook.