30 January 2017: Contrarian

Over a week of President Donald Trump makes clear that he is everything that his predecessors were not. Although many people are surprised, confused or perplexed (and some are surprised, confused and perplexed), investors do not falter. For the time being, they are giving Trump’s economic plans the benefit of the doubt. Or is it that they like the contrarian nature of the new President? There will come a moment, however, that being contrarian will become the new normal. Or is Donald Trump the kind of guy who will keep reinventing himself, as a true Donald C. Trump?

white-chapel-logo-smallUS indices were mixed at the close of last week. The S&P 500 and the Dow were somewhat down, the NASDAQ went slightly up. Volatility went further down and closed at 10.58 (-0.5%). Our UVXY ETFs also closed lower: -2.3%. Return since the start for our model White Chapel lowered to 172%. Return for the year is now at -33%.
White Chapel did not give a trading signal at the end of Friday’s session.

Accumulated capital at close of previous trading day

Return since start

Return this year

Return this quarter

$27,164

+171.64%

-32.61%

-32.6%

Our initial capital was $10,000 at 1 January 2016. Our average Annual Return is 153%.

ta_v05-small-invNear the back entrance to the book store, there was a car parked. The letters ‘KLF’ in its license plate set a train of thought in motion. It reminded Tim of music he hadn’t played for more than twenty years (“Justified Ancient Liberation Zulu / Got to teach and everything you learn / will point to the fact that time is eternal”). Which brought him back to the garden parties at his student house at which this music was played. Parties which took place in the heart of the summer around a camp fire.
Suddenly, the train of thought stopped and Tim found himself near the back entrance to the book store at a cold winter’s day in 2017.