ShieldCapital @ShieldCapital: "𝟰-𝘆𝗲𝗮𝗿 𝗮𝗻𝗻𝗶𝘃𝗲𝗿𝘀𝗮𝗿𝘆: 𝗗𝗶𝘃𝗲𝗿𝘀𝗶𝗳𝗶𝗰𝗮𝘁𝗶𝗼𝗻 𝗮𝗻𝗱 𝗱𝗿𝗮𝘄𝗱𝗼𝘄𝗻..."

United Kingdom

𝟰-𝘆𝗲𝗮𝗿 𝗮𝗻𝗻𝗶𝘃𝗲𝗿𝘀𝗮𝗿𝘆: 𝗗𝗶𝘃𝗲𝗿𝘀𝗶𝗳𝗶𝗰𝗮𝘁𝗶𝗼𝗻 𝗮𝗻𝗱 𝗱𝗿𝗮𝘄𝗱𝗼𝘄𝗻 𝗽𝗿𝗼𝘁𝗲𝗰𝘁𝗶𝗼𝗻: I can’t believe it’s been 4 years! Following, my original pinned post, I set out a means to provide diversification for my own risky assets and provide a safer complement to other copier’s riskier assets such as $BTC, or FAANG stocks likes $TSLA (Tesla Motors, Inc.) I am slowly building my track record here and so I hope I have demonstrated our multi asset strategy’s capabilities. You might consider this strategy as a complement to your other investments to reduce your portfolio's overall volatility and make use of any drawdowns. 𝗪𝗵𝗮𝘁 𝘄𝗼𝗿𝗸𝗲𝗱 📈 Lower risk with minimised drawdowns. Our biggest test was 2022, with our 1st Jan to 1st Sept drawdown of -8.31% vs the MSCI $ACWI drawdown of -18.51%. Our downside capture has been much lower. 📈 Able to generate cash plus returns with far lower volatility and low correlation to bonds and equities. Over 4 years we have returned 9.65%. 𝗟𝗲𝘀𝘀𝗼𝗻𝘀: Well hindsight is a wonderful thing. It’s been a generally strong period for equities and ideally one could have invested more risk. However, we have achieved our objective of much lower drawdowns and our “lower” absolute returns are due to the conversative equity positioning where we have only allocated roughly 𝗼𝗻𝗹𝘆 𝟯𝟬% 𝘁𝗼 𝘀𝘁𝗼𝗰𝗸𝘀. 🎯 Our closest comparator Blackrock $AOK ETF (blue line below) which also invests in 30% equities/70% bonds actually generate negative to flat returns since we started, whilst we have even managed to outperform Blackrock $AOM.US ETF (green line below) which has a higher level of risk with 40% equities and 60% bonds. 👉To be clear this strategy may not necessarily outperform a 100% equity index, but we aim to provide decent real returns in a low vol manner. In conclusion if you find my insights useful or you are looking for a safer part of your portfolio to allocate some cash, please feel to give me a follow or copy! More details in my bio!

5 Mentioned

BTC

Bitcoin

TSLA

Tesla Motors, Inc.

ACWI

iShares MSCI ACWI Index Fund

AOK

iShares Core Conservative Allocation ETF

AOM.US

Ishares Core Moderate Alloca