January 2023
To Investors:
In 2022, the S&P 500 fell by 18% and long-term Treasuries were down 31%. Combining them evenly with a small 2% allocation for cryptocurrency, the unleveraged Income and Growth investable benchmark was down 26%.
As a result, the leveraged investable benchmarks were down by 49% to 76%. This brings the trailing 10-year total return figures down to a range of 85% to 305%, or 6% to 15% annualized.
At ETF PM, our active strategies delivered important portfolio protection. Max Alpha was down 10% and Tactical 3x fell by 8%. Over the past 5.3 years since Max Alpha’s inception, this strategy returned 112% versus a gain of 65% for the S&P. Similarly, over 6.8 years since inception, Tactical 3x delivered 140% versus a gain of 110% for the S&P.
Overall, the market volatility over the past two years was challenging and has greatly sharpened our focus. We look forward to delivering a much better performance report as soon as possible. Thank you for your trust and confidence.
Please contact us if you would like to plan a call or meeting to discuss.
As always, we wish you and your family a happy, healthy, and prosperous New Year!
David S. Kreinces
Founder & Chief Investment Officer
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