January Auspice Diversified Program Commentary

The Auspice Diversified Program was off 2.02% in January.

Last month we wrote about Agility and its importance in sport, corporate leadership, and investing. Interestingly, it was a month that required just that and dovetails well into our next topic:  Dealing with Uncertainty.

Only one thing is certain: Change. Uncertainty is all around us. We know we can deal with certain change by reacting swiftly after seeing circumstance provide information. If we are agile, we can do this.  

But when the environment is more opaque, we need another set of tools to avoid the fear and paralysis that develops:

We believe in dealing with uncertainty with 3 simple rules:
Being prepared – Have a plan
Understand the risks
Sticking to the plan

For athletes, they come into an event prepared and have a plan.  Michael Schumacher, the most successful F1 driver in history, would review every aspect of the course in his mind for hours before the race. He certainly understood the risks and had a game plan to manage the car, the course, and the conditions.

In business, we build process, policies and procedures to reduce risk of errors being made in the moment. We have a plan that we share with colleagues and clients and we stick to it. 
Investing is no different. We have a strategy and we understand the risks. Moreover, we need to filter the noise that is being thrown at us via a plethora of media and market sources. It is important to stick with the plan. 

Right now, it is arguable that there are a lot of uncertainties in the markets. Intervention is tapering, there are mixed messages on growth and stability, and there are certainly risks in terms of price corrections and interest rate movements. But through all of this, it is important stick to our plan in order to take advantage of opportunity and protect assets.

Learn more about our key positions here.