14 October 2016: -10%

minusten-10%. That number was probably 1 negative percentage point too low for the markets to ignore Chinese export figures. A cold chill ran down the spine of many investors on Wall Street. It is not just that particular number that felt uncomfortable. Industrial production is struggling in Europe, with workhorse Germany showing signs of fatigue. The BRIC countries have been struggling for almost a decade and most of them have trouble picking up steam again. It is unlikely that the growth figures of these countries that once were will return in the upcoming years. Basically, the world economy is in trouble. Not big trouble, but it is not in the shape that is expected if one looks at the levels at which stocks are trading in the US. These levels can only be upheld if the US economy is able to pull the rest of the world economy out of the swamp. The cold Chinese figures reminded investors that this is a far from easy job, if not impossible.

white-chapel-logo-smallChinese export figures (too low) and oil reserves (too high) brought the major indices in the US down. Very much at the beginning of Thursday’s trading session, but not that much at the end of the day: the S&P 500 and Dow 30 lost around 0.3%; the NASDAQ around 0.5%. As a result, volatility shot up: our UVXY ETFs gained more than 6%. Return for the year has taken off lately and is now at 231%. Return for the quarter is at 8%. The average Annual Return is approaching 400%. This looks all very nice at the moment. And with a lot of turbulence to come, it might get even better and better…
White Chapel did not give a signal at the end of yesterday’s session. Volatility is the way to go for our model. So we stick to our UVXY ETFs.

Accumulated capital at close of previous trading day

Return since start

Return this year

Return this quarter

$33,076

+230.76%

+230.76%

+8,0%

Our initial capital was $10,000 at 1 January 2016. Our average Annual Return is 368%.

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René’s Reflections @ Friday: Added Value

Over the weekend, while eating a cheese sandwich for breakfast, I suddenly noticed that I was chewing on something hard that surely wasn’t part of my sandwich. broken_toothI took the foreign object out of my mouth and examined it. It appeared to be a big part of a filling, coming off of one of my teeth. A closer look into the mirror pointed out that my lower Second Premolar was in ruins. Later that day, I found out that my tongue didn’t quite like its new environment. It continuously scratched against the sharp parts of the broken tooth, and it started feeling more painful by the hour.
So an appointment at the dentist was quickly made: first thing in the morning on Monday. While the dentist routinely and skillfully repaired my tooth, I realized once more that good old-fashioned craftsmanship is vital for our economy. How on earth could investment bankers, telemarketeers, speculators, brokers and advertisers make their money, if not for bakers, shoe repairmen, dentists, fishermen, teachers and furniture makers, who actually add value to our economy in the true sense of the word?