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3D Defender Program Newsletter 10-16-20

Weekly Update

posted by 3D Defender (Short Equity) Program
4mos ago 2261

In March of this year prior to the COVID-19 Pandemic and lockdown I was grateful to appear on Bloomberg TV and provide insight into how 3D Capital views the world, manages equity market risk, and protects our clients Video Link. The chart below will also provide insight into why it’s important to manage equity market risk one day at a time. Days make up weeks, months, quarters and years.


The S&P 500 closed this week within 1% of its all-time weekly closing high. Before we get to the week I’d like to remind you that since the market’s first down year in 10 years, the S&P 500 has entered a new volatility regime.


It has been a remarkable, volatile, and historic run for the market since entering this new volatility regime in 2018. We all know the stock market offers two guarantees: Gains when the market goes up and Losses when the market goes down. The chart below makes it clear which is the risk that needs to be managed. Included is the comparative performance of the S&P 500 and 3D Defender.


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