December Auspice Diversified Program Commentary

The Auspice Diversified Program was off 0.36% in December.

We are moving to a slightly different format for the monthly commentary. Each month will highlight a theme or idea. Topics will be related to investing, this strategy, the market and trading based ideas. We hope you enjoy it.

Agility: The ability to maintain control without losing time in transition.

In sport, it is a determining factor for success as it improves the quality of movement. Wayne Gretzky was not the fastest or biggest, but as the highest point scoring hockey player ever he is considered the best to play the game due to agility in moving through the play, avoiding other players, and making the play develop.

In corporate leadership, it is considered a critical requirement that sets apart companies and its chances for success. Leading in the volatile and fast paced environment of today requires a decisive responsiveness in order to change and evolve to survive, adapt and improve. 

Agility is also critical in investing. In 2008, the equity markets rallied for the first half of the year and then dropped precipitously in the second half, erasing years of gains. Trend following strategies that were agile enough were able to capture gains both on the way up and the way down, not giving back the returns made in the rally. This is a valuable skill for any investor. The ability to make gains, capture them and set up for whatever happens next.

The old saying is “the trend is your friend until it bends in the end” is true, but if one is agile they may be able to capture the trend and worry less about the bend. The agility of Trend Capturing is essential and what separates fund managers at specific critical times.

For more discussion on this topic as it pertains to investing right now, please contact us directly.

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