Our model portfolio gained 3.5% in December and reached another record high. For the full year, our portfolio had a very comfortable 31.4% return, beating the 9.5% return of the S&P 500 index by 22%. As described previously, we use two investing strategies in our model portfolio: a long term dynamic allocation strategy that allocates assets across equity, bond and other assets base on trend and momentum; a mid to short term strategy trading VIX ETFs based on term structure of VIX futures. Both strategies performed very well for the year. The dynamic allocation returned 27% for the year and the VIX strategy returned more than 100%.
We did not have any trade for the month. We remain fully invested at the end of the month.
Table 1. YTD monthly and cumulative returns of our model portfolio and S&P500 index
Disclosure: I am/we are long SPY, XIV, SPXL, RPG, PRF.