With the SP500 breaking its all time high at 2134 last week , our 10% stop on our Proshares SP500 ultrashort was triggered at 16,92USD .
Our portfolio still has a strong advance of nearly 4% on a 6 months period compared to our benchmarks : +10% vs + 6,10 %. The MSCI World index performed +2,47% since Dec 31st 2015.
We keep a strong cash position above 50% and so a very cautious stance, even tough we are conscious that after recent
break of all time high on Dow and SP500, potential upside (5%?) still exist from here . We believe that risk is currently badly priced in equities markets and that downside risk far exceeds upside potential so we are not keen to risk capital for additional 1, 2 or 5 % upside.
We are ok to buy « specific » situations ( like Twitter and 30% + profit in 2 months) but we do not « buy the market » at current levels.
For those who are equities overweighted , we will inform you later this week on how to put in place a hedging srategy depending on market conditions.