This time we’re going to start with a six-chamber revolver of facts.
“I’m going to begin with a bold statement: I believe the Laissez-Faire algorithm will be one of the best performing investment vehicles when compared to any other investment vehicle, commodity, index, bond, or ETF by the end of the next recession.”https://www.laissezfairefund.com/2019/09/26/laissez-faire-and-bitcoin-during-a-global-recession/
Despite all of the failures of the governmental bodies, now is a great time to be an American because of the dollar. We have an economic chokehold on the entire world and the banking system. The dollar continues to rise into all of this money printing because people are fleeing to cash more quickly than the Fed can print. The demand for dollars is currently higher than ever, with many banks putting limits on cash withdrawals. This seems bearish on the short term for Bitcoin, but ultimately dollar devaluation will be a massive boon for Bitcoin.
Laissez-Faire began trading in March 2019. How have various assets performed since then?
SP500 Index: -16% Since March 2019, -30% from current high to low
XAUUSD, Gold: Up 12% Since March, Down -14%
Bitcoin: Up 40% Since March 2019, Down 63% from local high
TLT, Bonds: Up 26% since March 2019, Down 15.5% from the highs.
Laissez Faire: Up 129% Since March 2019, Down 10% from the highs.
Has anyone seen Indiana Jones?
As for the rest, it’s apparent that we are now in a recession. As mentioned two weeks ago: https://www.laissezfairefund.com/2020/03/03/at-the-border-of-a-recession-why/
Vix is much above 45 now… https://www.laissezfairefund.com/2020/03/06/a-quick-follow-up/
The Federal Reserve is injecting the markets and economy with never-seen-before magnitudes, and it’s simply becoming much harder to predict how this will play out. The reason for doing so is likely because things not are going well – something that will become clearer soon. Credit markets are collapsing, mass flight to the dollar and US treasuries, and there is widespread bottom-up and top-down issues with the economy. What is clear is that we are in a financial crisis.
This most recent crash in Bitcoin was certainly a good stress test for the algorithm, and I believe it handled it well. (50% drop in underlying, 10% drop on LF performance)
Things may get very exciting soon for Bitcoin, and the markets are not far from at least a short term bottom, so hang tight. The Italians have the right idea.
Meanwhile, the algorithm trades on.
Stay safe and take care!