Dear Investor,
I concluded last month's overview with "Cyclically speaking, March is a weaker month of the year. The saying goes, 'March comes in like a lion and goes out like a lamb.' The question that can be asked here is, 'Does this also apply to the coming trading month?'"
The answer is now known. The SP-500 index closed March with a loss of -5.8%. ESST closed the month unchanged at exactly 0%. For the entire year, there is a loss of -4.77%.
There was no trading this month, so there is no best or worst stock.
This is the fifth week that the system has held cash. In hindsight, this was the right signal, especially considering yesterday's sharp declines. The SP-500 lost another 4.84% yesterday on news of the trade war.
When money is not invested and is held in cash, it is (in my opinion) less worrying to see the stock markets falling sharply. This means there are more 'bargains' to be found. The question on everyone's mind is: "Has the market now bottomed out?"
Of course, no one knows that! You can only say that in hindsight. When you're not invested, it doesn't really matter whether today is the bottom or whether it might be a month from now and another 10% lower.
Once the bottom has been reached, the sharp declines will become smaller (i.e., less volatility) and the markets will resume their upward trend. ESST will then also re-enter the market and hopefully be able to recoup its losses.
There will undoubtedly be some customers among you who think something like, "I pay subscription fees and nothing happens on my account. Why am I paying, anyway?"
I understand that you may think this way, as you have a subscription to the entire Exclusive Signals Stock Trading system. Keep in mind that cash is also a position. In this case, it is a very conscious position and, in hindsight, a correct position. Every week, the algorithm generates a list of stocks to invest in for the coming week. The risk management system (also incorporated into the algorithm) ensures that the indicated stocks are given a 'zero' position. When the risk management system is not enabled, positions are taken every week that would have resulted in a loss of -9.74% over the month of March. I hope this explanation gives you a little more insight into what you are investing in.
April did not start strongly at all, and technically speaking, it could go even lower, but for all we know, the bottom could be in place today. We will find out on May 1.
Sincerely,
Henry van Ginkel