August 2020 was a month for the record books, as mega cap tech stocks ‘went to the moon’ as shown by the year-to-date indexed graph of the ‘Big 6’ (white line) versus the rest of the S&P 500 (red line) on the below left. Interestingly, excluding those six index stocks, as of 8/31/20, the cumulative YTD price performance of the other 494 companies remained 1.5% below break-even. Then there’s Tesla (TSLA.US), a stock yet to be added to an index, up 74% last month, and as you can see from the table on the below right, now the 7th largest market cap in the U.S. For Tesla’s cap to be $30B more than long-term fund holding VISA Inc (V.US) is sheer lunacy in my books, but I guess that’s what happens when the Central Banker of the world says “we’re not even thinking about thinking about raising rates”, as the longest duration equities rise the most! More on this later, but first let’s recap the performance of our funds.
Alternative asset manager offering investment solutions that find a balance between asset protection and capital enhancement.
Alternative asset manager offering investment solutions that find a balance between asset protection and capital enhancement.