22 August 2017: Jackson Hole time again

If you are a regular reader of this blog, the term ‘Jackson Hole’ will not sound unfamiliar to you. Almost a year ago we also wrote about this valley in Wyoming. Not only because we are of the nature-loving kind, but more importantly because of the yearly meeting of monetary leaders there. The Janet Yellens and Mario Draghis of this world will gather during the second part of this week to discuss financial and monetary matters that –in the end– matter to all of us.
Stock investors also keep an eye on what is going on in the Equality State. Especially the leaders of central banks might give hints during their talks about which way their monetary policy might be heading. And that could have an effect on stock prices. Trading was very thin in the stock markets yesterday and that was not only due to the holiday season.

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US indices ended mixed yesterday, but were all virtually unchanged. The Dow and S&P both booked small gains of just slightly above 0.1%. The NASDAQ recorded a very small loss: -0.05%. Volatility showed a very different picture however. The VIX closed more than 7% lower. The fear index is still above 13 points however. UVXY ETFs did even worse than the VIX and lost close to 8%. XIV ETNs were on the rise: they closed 4.34% higher.
Danny Daredevil has a very hard time to pick up his pace. His RSS dropped to 112% yesterday. Adventurous Anny is holding cash. Her RSS remained at 4%. Solid Suzy and Lazy Larry had a very good day: the value of their portfolio increased with more than 4%, as they are holding XIV ETNs. Their RSS rose to 16%.
None of our models gave a trading signal at the end of yesterday’s session.

Model  Holds Start date

RSS

YTD

QTD

AAR

Danny Daredevil UVXY 1 January 2016

111.63%

-47.50%

-51.38%

58%

Adventurous Anny Cash 6 March 2017

3.84%

3.84%

-25.11%

8%

Solid Suzy XIV 6 March 2017

15.63%

15.63%

-7.62%

37%

Lazy Larry
XIV 6 March 2017

15.63%

15.63%

-7.62%

37%

RSS = Return Since Start | YTD = Year-To-Date | QTD = Quarter-To-Date | AAR = Average Annual Return

 

The Chapel Family – Episode 10

Larry opens a letter, addressed to the Chapel Family. He reads it, then hands it over to Anny. “This is not for me, it’s for you guys.”
Anny: “It’s about the gene therapy we talked about in the clinic, a couple of weeks ago.”
Danny and Suzy lean forward.
Danny: “What about it?”
Anny: “It says we are eligible for the treatment. We can make an appointment if we like.”
Suzy: “That’s great! The sooner the better.”
Danny: “Yes indeed. Let’s get this over with as fast as possible. If they can rejuvenate us with a simple genetic update, then why wait any longer?”