March was again a negative month for the AEX with - 0.76% for the month, but there was also much recovery to be seen during the month.
RVM Strategy had a satisfactory return for the system of + 1.60 %. However, it must be taken into account that for RVM Strategy the length of a trading month, the number of trading days, plays a role; March was a relatively long trading month and thus the return can be somewhat higher.
RVM Strategy has now been profitable for 27 consecutive months, but that is only interesting for the outside world. In managing the positions, we are not concerned with that. We strictly apply the trading rules and never deviate from them. So it is never clear in advance what the market will 'give'. "Facts are stubborn things" is a nice English expression, and stock market prices are just as factual and 'stubborn'. You cannot have conspiracy theories about stock market prices, and you can argue about who is responsible, as in a war, but the fact remains that the prices are a fact. That is also the beauty of this profession. We deal with something that actually happens and we do our best to calculate what the prices will be in the future.
RVM Retirement achieved + 2.17%; the momentum strategy here is about the same as that of RVM Strategy. Retirement also has some very long-term fixed investments, and these were slightly positive in March. Hence Retirement had a slightly higher return than RVM Strategy.
Although March was negative for the AEX, there was a substantial recovery during the month. We think that this recovery may continue in April and that the price bottom for a somewhat longer term may have been set in February. Of course, this is not certain.
How far the recovery will go in April we obviously do not know, but there are all kinds of hopeful calculations. We assume that the price of the AEX at the end of April will be higher than in March. We would like to emphasise that neither RVM Strategy nor RVM Retirement works with this kind of statements and this view of the market. Both trading systems have nothing to do with this.
As always, you are welcome to join RVM Strategy and/or RVM Retirement.
Many people have gone before you!
Sincerely,
Ruud van Megen