The Vig Company Announces Year End 2021 Results!
Here is our V2 Newsletter performance for 2021 and our recap of the year.
V2 PERFORMANCE
2021
V2 +33.44%
SPY +28.59%
3-Year Annualized Return (2019 to 2021)
V2 +83%
SPY +26%
3-Year Total Return
V2 +515%
SPY +99%
5-Year Annualized Return (2017-2021)
V2 +69%
SPY +18%
5-Year Total Return
V2 +1,291%
SPY +132%
V2 Ranking vs. All ETFs (2,860)
TOP 10% 2021 (#243)
TOP 1% 3-Year (#9)
TOP 1% 5-Year (#4)
(Industry ETF data from Morningstar and Etrade ETF screeners.)
RECAP
V2 had a good year.
Even though the performance this year was less than our historic averages we did achieve our only two goals:
We seek to beat the market (as defined by the Sp500) each year.
We seek to have significant outperformance over 3 and 5 year time periods.
We are proud of our performance and take even greater pride in our long-term results.
This was one of the more interesting years for the V2 Model. In a typical year, we get the opportunity to short the market - which normally gives us the ability to stretch our lead. That did not happen in 2021. We never went short. The market did, however, have a number of quick pullbacks highlighted by quick bouts of volatility. That was enough to have us hedge us to cash for short periods of time. This protective element to the Model slowed our growth.
For the first time in over 40 years, we had rising inflation and increased potential for rising interest rates. The market experienced sector rotation market at different periods moving from tech and growth assets to more value-centered investments (that would benefit from inflation). Then back again.
We did not see strong mathematical, extended trends develop and the pullbacks were just enough to keep us honest. Directly related to this we had more holding and allocation changes than in any year since inception.
We were busy!
The V2 Model performed exactly as expected.
We do not forecast, but looking into 2022, we do expect rising interest rates, inflation, and volatility to continue - but slow its expected rate of change. Probabilities would indicate we see a full-on 20% or greater correction at some point. And, we are hopeful that Covid begins a true wind down.
We are optimistic the V2 Model is up to the challenge.
PLAN
Our plan for next year? Market trends may change and they may change rapidly. We will stay in the now, be nimble, and be vigilant to changes in either direction. We will follow the math.
Distance=Victory
Chris
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About the V2 Model.
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 trends. 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, AGG, TQQQ, SQQQ, or CASH at any time.
We make all of our holdings and allocations available Members in our V2 Model newsletter as as they occur.
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.
You can learn more about the model, its holdings, and how it works by going through each link on our website. The V2 newsletter is available for $15 a month. And of course, you can unsubscribe at any time.
THE VIG COMPANY LLC INFORMATION AND NEWSLETTERS ARE NOT A RECOMMENDATION TO BUY OR SELL SECURITIES. WE ARE SIMPLY LISTING THE RESULTS OF OUR MODEL. WE MAY BUY, HOLD, OR SELL ANY SECURITY LISTED IN OUR INFORMATION AT ANY TIME. WE ARE NOT REGISTERED INVESTMENT ADVISORS AND HAVE NO UNDERSTANDING OF YOUR PERSONAL FINANCIAL SITUATION, RISK TOLERANCES, OR INVESTING OBJECTIVES. ANY INVESTMENT DECISIONS YOU MAKE ARE YOUR OWN. PLEASE DO YOUR OWN DILIGENCE WHEN INVESTING YOUR HARD-EARNED MONEY.
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