29 December 2016: Italy, Italy…

Last weekend, the Italian government decided to rescue the oldest bank in the world, Banca Monte dei Paschi di Siena. European rules dictate that bond holders must contribute to the rescue operation. However, the Italian government looks into possibilities to spare holders of certain subordinated bonds. This is not only illegal, but it will also return us to the years before 2008. Apart from introducing uncertainty in the Italian banking system, it might also trigger, in the end, a new European political crisis. If the Italians do not change their minds, Europe will be off to a shaky start of 2017.

white-chapel-logo-smallBanks, basic materials companies, industrials, utilities and energy stocks were among the biggest decliners yesterday. However, volume was pretty weak. The Dow fell 0.6 percent, the S&P 500 lost 0.8 percent and the NASDAQ slid 0.9 percent. Volatility rose sharply: the VIX added 8% and our UVXY ETFs gained 7%. Return for the year of our model rose to 276%. Return for the quarter is above 20%.
White Chapel is expecting more volatility and advises us to stick with our UVXY ETFs.

Accumulated capital at close of previous trading day

Return since start

Return this year

Return this quarter

$37,593

+275.93%

+275.93%

+22.7%

Our initial capital was $10,000 at 1 January 2016. Our average Annual Return is 284%.

RS_v05-smallIn a country with many waters and rivers, like the Netherlands, you will cross waterways almost everywhere you go. Yet, most of the times this goes unnoticed. Major roads and railways cross waterways by bridges, tunnels, and aqueducts, which blend into the landscape in an unobtrusive way.
But in case you find yourself looking for the shortest route in the countryside, chances are that between you and your destination, a river is blocking your way, where there is no bridge, tunnel or aqueduct to keep your feet dry. At such places, you are likely to find a ‘veerboot’ (pontoon ferry) that carries you and your vehicle across.
It happened to René when he drove from Wijk bij Duurstede to Elst. It turned out, that his car’s navigation system sent him over the river Lek. There, the road ended, and the pontoon ferry of Ton Paulus Veerbedrijf was just about to cross the river. To René, this type of transportation is a real treat. He likes boating, and most of the times these pontoon ferries come as a total surprise. There are so many pontoon ferries in the Netherlands, that you can spend a lifetime trying them all out (here’s a list).