“As we express our gratitude, we must never forget that the highest appreciation is not to utter words, but to live by them. ”
John F. Kennedy (1917-1963)
35th US President
Those are words we live by every day here at MarketClub and our parent company, INO.com. Our goal and mission is to help and assist our members get the very most out of MarketClub and all of the services we offer.
With thousands of members around the world in over 100 countries, we take our mission very seriously. Our goal is to provide you with the tools that will help you achieve the kind of results you may have only dreamed of.
It is with that in mind that I invite you to watch this four minute video on the World Cup Portfolio.
Since late 2007, we have been religiously tracking a portfolio that we designed to take advantage of the ever changing world we live in. This portfolio contains six core elements, all of which have performed extremely well in both Republican and Democratic administrations.
When you compare the World Cup Portfolio against other major assets, you can see how well it has performed. We did not change our approach, nor did we trade in and out of hundreds of different markets. We simply stayed with the same six core elements that we started with in 2007. These six core elements have historically made big moves both on the upside and downside.
Without big moves, you cannot achieve big returns. But there is a trade off - higher risk. Traditional thinking goes like this, the higher the return, the higher the risk. I would argue that the non-correlating assets in this portfolio actually lowers risk.
On the positive side of that coin, this portfolio has never had a negative year. In fact, during the last 21 quarters it has lost money in only 3 of those quarters. To put the risk factor in perspective, the best return for any one quarter was 156.1%, while the worst return for any one quarter showed a loss of 16.6% .
This portfolio has never had back to back quarterly losses, ever!
Finding the year-by-year returns for the major asset classes was a challenging task, so hopefully you will find the following table useful. The left column shows the return of the Barclay Capital U.S. Aggregate Bond Index (which was known as the Lehman U.S. Aggregate Bond Index prior to Lehman Brothers’ collapse). The index measures the performance of investment grade bonds in the United States. The middle column represents the S&P 500 Index, which measures the performance of the 500 largest companies in the U.S. stock market. The third column represents MarketClub's World Cup Portfolio.
| Bonds | S&P 500 | World Cup | |
| 2007 | 6.97% | 3.5% | 123.6% |
| 2008 | 5.24% | -38.5% | 501.6% |
| 2009 | 5.93% | 23.5% | 48.5% |
| 2010 | 6.54% | 12.8% | 35.3% |
| 2011 | 7.84% | 5.0% | 186.7% |
| 2012 | 3.55% | 16.44% | 73.8% |
| AVERAGE | 6.11% | 3.70% | 140.9% |
I think is fair to say that that the S&P 500 has proven to be a poor investment vehicle for the last several years with a measly 3.7% average return. In my opinion, the major reason this has happened is the fact that the world has changed dramatically in the last decade. Not only is the world more interconnected financially, but we have also seen the economic rise in Asia and India, with many of these economies far outpacing the GDP of the U.S.
CONCLUSIVE PROOF
We've been talking about this portfolio since 2008. Please feel free to explore these earlier blog posts. As you can see, the style of the blog postings has changed, but the trading approach and the six core elements of the World Cup Portfolio have not.
August 20, 2010 : Dissecting MarketClub's World Cup Portfolio
April 23, 2010 : Q1 Gold VS World Cup Portfolio
January 21, 2010 : How Did the World Cup Portfolio Fare in Q4?
November 3, 2009 : Q3 Results ... Best of the Year So Far
October 5, 2009 : 3 Potential Mega Trades in Q4
July 20, 2009 : Q2 Results for MarketClub's Trade Triangle Technology
January 16, 2009 : 94% Winners & Triple Digit Returns
October 21, 2008 : The Video That Proves it All
October 20, 2008 : Our Q3 Results Matched the Market Volatility and Then Some
April 8, 2008 : We Beat 2000 of the Biggest Hedge Funds in the World
April 4, 2008 : Hedge Funds Would Kill For Returns Like These
March 21, 2008 : We Thank You
January 31, 2008 : When We Showed Them Our Q4 Results They Were Shocked
October 4, 2007 : Gold, Crude Oil, the Dollar Index ... How Did We Do in Q3?
We believe that the days of buy-and-hold are over. We also believe that entrusting your money to an adviser can be a mistake. We believe that investors should be empowered to make their own decisions based on parameters with proven, successful trading tools that have stood the test of time.
The World Cup Portfolio puts the power back in your hands and provides you with a real economic road map that can help guide your finances through whatever comes down the road.
Every success using MarketClub's World Cup Portfolio! Remember to stay disciplined and always trade with the trend and use appropriate money management.
If you are not a member and would like to share this approach with a friend, please contact Melissa in our office 410-867-2100 x 106. Melissa will make the necessary arrangements for your friend or family member to watch the video and have access to MarketClub.
Sincerely,
Adam Hewison
Founder of INO.com and Co-Founder of MarketClub.com
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