US Election Day One: Investment Update

With the ‘HUGE’ US election upset, we thought you would like to see a quick portfolio update…

BOTTOMLINE = the SAGE Equity Model was UP 0.40% at this morning’s open.

SAGE Equity Model Pre-Market:

SAGE’s following attributes enabled us to gain from this disorder:

1. Our equity model has a 0.65 Beta compared to S&P 500, meaning the level of volatility in our portfolio is only two-thirds that of the S&P 500 stock index.
2. SAGE’s SMART (Systematic MeAn Reversion Trading) process directed us to add to our healthcare stocks over the past couple of weeks - despite all the pollsters saying Clinton was going to win and she would pinch the healthcare sector.  We are clearly as surprised as you are about the election outcome but our SMART process identified buying opportunities based on price – not punditry or the media.
3. Our significant USD exposure, acts as a natural hedge.  The US is less vulnerable to disruption even if they are the cause of the disorder.  This morning’s falling Canadian dollar acts as an offset to the negative stock markets.

As stated in our last investment newsletter, see attached or click here, volatility leads to opportunity.