27 December 2016: A graveyard for pop stars

2016 has become a graveyard for pop stars. After the death of David Bowie and Prince earlier this year, it was announced on Christmas Day that George Michael “passed away peacefully at home”. A look at social media gives us an impression of the impact of the death of famous musicians. Stock markets are normally totally unimpressed by the passing of people in the music industry, however. There are not many associations between artists and investing. Songs about stocks or bonds are very hard to find. A second look at a song like Investing in gold by The Itzels shows us that even this song is not an investment advice as we would expect. And maybe it is better not to mix Cowboys and Angels with Bulls and Bears…

white-chapel-logo-smallLast Friday, there was thin trading ahead of a three-day weekend in observance of the holidays. Major US indices made small gains and our UVXY ETFs were slighty lower: -0.8%. Return for the year for our model dropped to 261%.
White Chapel did not give a signal at the end of Friday’s session. We stick with our UVXY ETFs.

Accumulated capital at close of previous trading day

Return since start

Return this year

Return this quarter

$36,073

+260.73%

+260.73%

+17.8%

Our initial capital was $10,000 at 1 January 2016. Our average Annual Return is 275%.

René spent part of his Christmas time with friends in Wijk aan Zee, a small coastal town that is particularly popular in the summertime among tourists. In midwinter, the place looks quite desolate. If not for the dog walkers, joggers and kiters that populate the cold and windy beach, rain or shine, you probably would imagine yourself in a ghost town. Thanks to these diehards, the local hospitality and catering sector manages to keep spinning throughout the year. And they are doing good business for that matter: the hotels and restaurants that are open, are usually fully booked. If you want to make a reservation for a Christmas dinner at one of the better restaurants, make sure to do that before September, otherwise you might be too late.
The hotel where René was staying, was built in 1923. The floors and ceilings are made of wood, typical for buildings from this period. All this added to the atmosphere. That is, during the day. At night, on the other hand, you would wish that the entire building was constructed of soundproof concrete. In bed, René counted 19,987 sheep. But he failed to reach 20,000, as breakfast was served at 9 AM.
In Dutch, there is an expression that says “Oost west, thuis best” (meaning “home sweet home”). Surely, the good times with his friends made it all worth it. But when he got back into his own bed the next day, he realized that indeed, there’s no place like home.

*Picture of George Michael by Insasse under CC BY-SA 3.0.