3D Capital - Update

The dramatic swings since the 2017 record setting 12 consecutive up months shows that the S&P 500 has clearly entered a new volatility regime. In 2018 the market had its first down year in 10 years. This was followed by a parabolic surge of +47% to a new all-time high in 2019. 2020 has followed with a -36% decline and fastest bear market in history where all the market’s losses were overnight. This has been followed by a record setting surge of +37% in the last nine weeks and includes the second best 40-day rally ever for the S&P 500. Here is a fascinating visual:

You would expect an intraday short bias S&P 500 program to get decimated in this environment. This has not been the case with the 3D Defender Program. In fact, during this new volatility regime 3D Defender has been profitable and has beaten the S&P 500 (See below).

The last 2+ years have been a glaring reminder that the stock market moves in two directions. It has also been a true test for the 3D Defender Program and exemplifies the importance of managing risk one day at a time. As you can see from the performance table above, adding 3D Defender and stock market “Defense” to a Long-Only S&P 500 “Offense” would have increased the risk adjusted rate of return in an investor's equity portfolio. The power of negative correlation.

As a reminder the 3D Defender Program’s investment objective is to consistently profit and outperform the S&P 500 when the S&P 500 is down on the month AND to step aside during market rallies. Since Jan 2018 the S&P 500 has had 9 down months. This is consistent with its historical average. During these down months in the S&P 500, the new volatility regime (2018-2020), 3D Defender has been profitable 78% of the time and outperformed 100% of the time.

3D Defender has a long history of helping investors profit from stock market declines.

For more information please contact us:

RML Advisory, Fraumünsterstrasse 16, CH-8001 Zurich

Phone: +41 44 521 10 56 or +41 44 521 10 79

Email: [email protected]