How to Make Money When Everyone Else is Losing It

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Since May 20th, 2015, the S&P 500 Index has not made a new high.  It is unheard of to go over a year without a new high in a bull market; hence, many investors are wondering if the current bull run has come to an end.  After all, when equity markets stop going up, they usually start going down.  The market action has many investors nervous, but there are several other reasons for concern:

  1. First quarter 2016 earnings were down 7.5% year over year.
  2. We have seen two interim market drops of more than 10% since last August.
  3. Valuations are very high historically.
  4. We are in the 8th year of a bull market. The longest bull market ever was 8 years from 1982 – 1989.
  5. The Fed seems intent on raising interest rates this summer.
  6. We have an election coming up.

We believe the U.S economy is near the peak of the business cycle.  Consequently, there is significantly more risk to the downside than opportunity to the upside.  Most professional investors are currently obsessing about how to play defense through election volatility and a geriatric bull market, rather than thinking about how to make money.

 

Yet playing offense through volatile times can be far more rewarding, if you have a strategy that can profit in such circumstances.  Carden Futures, an affiliate of Carden Capital, runs a managed futures investment strategy specifically designed to take advantage of increased volatility.  This strategy, called The Night Prowler, places short term trades during the night session of the U.S. futures market in S&P 500 and U.S. Treasury futures.

 

We have been quietly building the track record of the Night Prowler since last fall, enjoying profits made on our own and family members’ capital, and now feel it is time to take the wraps off this strategy.  Here are some relevant statistics:

  • Net Returns January through May 2016 5.06%
  • Net Average Annual Return 19.52%
  • Maximum Loss 12.10%
  • Correlation with S&P 500 Index -0.28
  • Percent of Months Positive 68.33%
  • Percent of Trades Profitable 66.91%

Please click here for a full presentation and all necessary disclaimers to learn how the Night Prowler can help diversity and enhance the performance of traditional stock, bond and real estate portfolios.

 

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