A different perspective on investing

QUANTITATIVE ANALYSIS: UPDATE OF SYSTEMS RVM STRATEGY & RVM RETIREMENT

"Financial markets in general are unpredictable. So we have to have different scenarios... The idea that you could predict what will happen is contrary to my way of looking at the market."
George Soros

I agree with the above quote from Soros, after 28 years in the financial markets. Like everyone who is schooled in a profession, I started by following the methodology of certain teachers. One of the best pieces of advice I received in those early days, from a very old hand in the business, was: "sleep". For those who do not understand this immediately: In his opinion, it is best to simply follow the market, as it is not easy to beat it. And he gave this as advice before there were financial products that could follow an index, i.e. trackers. I mention this here because I still think it is one of the best pieces of advice that can be given. However, that is not what I ended up with as the best way to invest. The main reason for that were the two big stock market crises I had to deal with, the one in 2000-2003 and the one in 2007-2009. At that time, it was nice to have a method that could profit from falls, a method that worked with insurance. You can see how this worked out with the advisory service I had at the time in the following graph. The crisis of 2007 - 2009 led to a huge advantage for followers of my methodology compared to index investors. This was the difference: look at the graph.

Graph of the AEX index (dark red) compared to the return on RVM Systematic (green) between 2007 and 2010. Vertical axis shows the investment in Euros.

20,000 Euros became 40,000 Euros between 2007 and 2010, while index investors quoted around 13,000 Euros at that time. That is a huge difference that index investors will not easily make up.

The methodology at RVM Retirement and RVM Strategy in 2021 differs from the methodology you see here, but what has remained the same is the ability to not be affected by large market declines. Just take a look at the RVM Strategy and RVM Retirement return charts in 2020 and you will see what I mean. The Corona crash of February/March 2020 is not reflected on the return charts.

WHAT IS THE WORKING METHOD
The methodology used has a basis that is mathematical and falls under the heading of quantitative analysis. The calculations are our own invention and remain secret. We also use fundamental analysis at RVM Retirement, which we give our own interpretation. Our investments have to meet 6 conditions and we do not deviate from them. The methodology is specifically tailored to the managed investment as Systems2Follow offers it. I have designed a methodology for Systems2Follow that makes it possible for new followers to get in and start working immediately.

UPDATE FROM RVM STRATEGY & RVM RETIREMENT 12 APRIL 2021
Everything is going according to plan so far in 2021. The methodology has been able to use the existing market conditions to achieve returns. RVM Strategy has been profitable on a monthly basis since January 2020. This is not a target in itself. Nor do we have a profitability target. In our opinion, using a profitability target is unprofessional. A good method creates profitability. An integral part of this is the professional management of both money and risk. RVM Retirement works with the same calculations as RVM Strategy, but here we also have long-term interests in certain companies, from our fundamental model. Hence, the return here was even better. The long-term investments appear to be well chosen.

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