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Bull & Bear Tracker Up 5% Despite Being in 100% Cash for Majority of January 2020

The Tracker handily beat the S&P 500's 0.2% decline for the month despite being all in cash for 11 days out of 21.
Michael Markowski writes for equities.com.
Michael Markowski writes for equities.com.


iStockphoto, Darren415

For January 2020 the Bull & Bear Tracker’s signals produced a 5% gain vs. a 0.2% decline for the S&P 500. The big story, however, is that the tracker was sitting in 100% cash for 11 days and in 50% cash for 10 of January’s 21
trading days. The table below depicts that, for January 2020, the Bull & Bear Tracker’s blended time spent in cash
was 76%. The first month of 2020, established a new record for percentage of time spent in cash vs. all prior months since the Bull & Bear Tracker has been publishing signals.

From April 9, 2018, the date of the first published signal and through the end of January 2020, the Bull & Bear Tracker’s produced a gain of 74.8% compared to a 23.6% gain for the S&P 500 index. Since June 30, 2019, the Bull & Bear Tracker:

  • Produced gains for seven consecutive months
  • Averaged a monthly gain of above 5%
  • Produced a total return of 39.1% vs. 9.3% for S&P 500

With the significant reduction in risk, the Bull & Bear Tracker has become an even better vehicle to park cash and also for tax deferred retirement accounts such as 401(k)s and IRAs. By June 2020, we intend to make the Bull & Bear Tracker’s signals auto-executable through an online broker.

The Bull & Bear Tracker’s signals are utilized to trade exchange traded funds (ETFs) which mimic the performance of the S&P 500. A long ETF is utilized when the signal is green, while a short or inverse ETF is utilized when the signal is red.

For example, when the S&P 500 advances by 10% while under a green signal, the long ETF increases by 10%. Conversely, should the S&P 500 decline by 10% while a red signal is in effect, the inverse or short ETF would increase by 10%.

For more about the Bull & Bear Tracker go to bullbeartracker.com. For a 90-day free trial subscription go to bullsnbears.com/bull-bear-tracker-register/. To be alerted when the signals become auto executable and for monthly performance alerts, register at https://bullbeartracker.com/performance-news/.

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Equities Contributor: Michael Markowski

Source: Equities News