Dear Friends,
I hope this message finds you well! As you know from our occasional emails, RollingWave Capital has been very bullish for the past two years. We’re thrilled to see the market up roughly 20% year-to-date. Historically, the S&P 500 averages around a 10% annual return, with election years averaging approximately 11.28%. Notably, re-election years tend to perform even better, averaging around 12.2% (SlickCharts) (Jackson) (SP Global).
This leads us to believe that, for the first time in a while, the market is extended and due for a pullback. While this pullback might be small relative to the recent gains, it’s a prudent time to make some tactical trades. Markets often move ahead of news in an anticipatory way, and we want to ensure we’re prepared for any potential shifts.
At RollingWave Capital, we often find that placing hedges instead of selling is the smarter investment decision. A well-placed hedge can protect your portfolio while allowing you to stay invested in the market. We believe in the power of a good hedge to manage risk effectively, optimize returns, and minimize taxes.
Recently, we placed a hedge for select accounts that has already seen a 65% increase. This is a testament to our proactive approach and commitment to managing your investments strategically. If you have any questions or want to discuss how hedging could work for your portfolio, please don’t hesitate to reach out.
Thank you for your continued trust in RollingWave Capital. We’re here to help you navigate the markets and achieve your financial goals.
Best regards,
JC