SWM fact sheets September 2021: more outperformance in crypto, equity rally running out of steam


September 2021 saw weakness in all portfolios as equities, bonds and crypto declined across the board. The pincer of higher inflation fears and “peak equity” after the 12-year rally are beginning to be felt. Our crypto portfolio outperformed the HODL crypto index by 1%, taking year-to-date outperformance to 15%. The SWM crypto portfolio is up over 5% since we launched the strategy in March, and the crypto index is down 9% in the same time period. Our multi-asset portfolios have been impacted in recent months by the meteoric rise in commodities prices. Since we do not hold any oil-related ETFs (due to our sustainability commitment), we did not benefit from this. However our multi-asset portfolios are all up between 4% and 12% year-to-date, and in-line with the various strategies’ risk budget.

How should investors position going forward? We believe the best mix of capital preservation and upside return is represented by a 60%-80% allocation to the SWM balanced or conservative ESG portfolio, with 20%-40% invested in crypto. We are increasingly cautious on mainstream equity markets, where our technical trading signals have been deteriorating for several months now. We reduced equity exposure over the summer, we are now actively considering going underweight equities, which would be the first time for 10 years.

Please follow this link to read Secure Wealth Management’s monthly ETF portfolio review for September 2021.