February Auspice Diversified Program Commentary

The Auspice Diversified Program gained 1.60% in February as we continued to take profits in the Equity market and commodities came to life.

Are you worried about missing out?

For many investors, the fear of "missing out" on future market gains is overwhelming. Is it misplaced or a real concern?

An opportunity loss never feels good - in life, in business, or in investing. We all have had investment ideas we didnt pursue, or tips we received that would have made us money - maybe even a lot. But oddly we get over it - very quickly. In fact, its hard to remember them months and years later.

This is especially true when the first priority is to preserve capital. While personally we may feel we missed out, the mature institutional hat recognizes the less material aspect of this.

While we agree that missing out never feels good, the greater risk is losing gains already made is much worse. Right now, the markets have been on a great run-over 3 years. This makes it hard for investors to take risk off - given the trend - something we believe in. However, losing gains is a much harder pill to swallow.

Take this time to reflect. Does the possibility of further gains justify the risk of substantial loss? Remember, a 33% loss in in portfolio value requires a 50% gain to make it back - this can take many years. Letting investments run is key for long term success, but it is worthwhile to consider adjusting when the risk changes. By having a plan, the times of uncertainty can be less stressful. By sticking to the plan, the potential opportunity loss is outweighed by new opportunities.

Learn more about our key positions here.