Personally, I was happy with this little-used code fragment that reduced risk overall to the many users on our platform. Given that Tuesday and Wednesday were sure to create further and potentially dangerous downside volatility in the US equity markets. As it turned out, at least politically, the worst that could have happened did and yet the markets were up. I personally feel that there is still a lot of risk out there, but the stimulus that’s coming with Democrats fully in control coupled with easy monetary policy is a force that cannot be denied.
Flip had its best year ever. Every single SmartFolio beat the S&P 500. The S&P benchmark was up 42% with a max drawdown (MaxDD) intermonth of just 8.6% in March. Results are below:
|A.I. SmartFolios||2020 Performance|
|The S&P 500 |
Again, remember that it’s not just about performance; Flip also cares about the risk its Smartfolio users experience. The S&P500 at one point in March was down 33%, while at that same time iFlip investors had just got back into the market a few days before, not experiencing the pain that the average investor faces. This is why iFlip vastly outperformed the market (S&P500) in 2020.
Well, 2020 is over, thankfully, and now onward with 2021. I expect 2021 to be an up year, however I also expect as the vaccine rolls out the country will be forced to look squarely with the debt it has created in keeping its economy running. Expect a move toward higher taxes later in the year. If you’re Big Tech, expect that to come sooner than later. This is a headwind for tech but their margins are huge, and keep in mind that there are well-established multinational companies that are very savvy on taxation and have paid higher taxes in the past, and yet their shares still advanced. For now, let the A.I. do its thing. All SmartFolios look as good now as they did in the troughs of 2020 despite their gains. There is more to go for now. So in a nutshell, at least in this observer’s opinion, expect 2021 to be another good year!
All the best and again happy and safe 2021!
The post Weekly Market Recap: 2020 A.I. SmartFolio Performances – Here Comes A New Year appeared first on iFlip.