31 January 2017: Trump euphoria?

Yesterday, it was really the first time that Donald Trump’s decisions were a reason for concern to investors. It was something that had been expected for long, but never seemed to materialize. What was different in comparison to all previous days? Was it just the sum of small causes? Profit taking after a long period of rising stock prices? Or were Trump’s immigration orders perceived as truly harmful to stock prices? Yesterday’s session proved that the so-called Trump rally is not ready to transform itself into Trump euphoria. In that case, investors would have been totally immune to whatever decision made by President Trump or whatever sentiment present in society. The rest of the week will show us whether Monday marked the beginning of a new phase or was just a small hiccup.

white-chapel-logo-smallUS stocks experienced a heavy trading session yesterday. The VIX was up almost 22% at its intraday high, but eased toward the end of the day:  +12%. All major US indices lost at least 0.6%. Our UVXY ETFs gained almost 6%. Return since the start of our model rose to 187%. Return for the year improved to -29%.
White Chapel is expecting more volatility, so we stick with our UVXY ETFs.

Accumulated capital at close of previous trading day

Return since start

Return this year

Return this quarter

$28,726

+187.26%

-28.74%

-28.7%

Our initial capital was $10,000 at 1 January 2016. Our average Annual Return is 164%.

RS_v05-smallThe world is changing at a rapid pace. Old values and certainties seem no longer appropriate. They are continuously challenged or redefined, and make way for new ones.
Last Sunday, René watched the men’s singles final of the Australian Open Tennis Championships. A thrilling five-set encounter between Roger Federer and Rafael Nadal.
It’s one of the greatest rivalries in tennis history. A rivalry that is referred to as: Federer–Nadal rivalry, or “Fedal”. René enjoyed watching the match more than ever, since he realized that this was not just a Grand Slam final, but probably also the end of another era.