The Audacity Strategy gained +13.7% for the week while the S&P 500 was higher by +0.4%. This brings Audacity back into positive territory for the year while the S&P 500 remains lower by -8.0%.
Built-in Risk Controls
It was an extremely volatile week for both Audacity and the S&P 500 as investors reacted to news regarding the coronavirus. Audacity has multiple built-in risk controls including one that reduces the total exposure, and therefore reduces risk, when volatility increases as it has.
There’s no way to know what comes next. The obvious answer is more volatility and I suppose this is likely. Volatility though can disappear as fast as it came upon us in late January.
Regardless of where the market goes next, the performance of our Audacity Strategy will continue to have its good and bad days sometimes doing better than the market and sometimes worse. As more time passes, and as research shows in last week's blog, odds will remain in our favor that Audacity will continue to deliver better than market performance.