Ending the year 2015 in good shape was the first test for the FRF Fund.
As repeated numerous times in my previous FXP Insight posts, 2015 was unfortunately a year of great distress in just about every USD-denominated asset classes. Clearly, I could not have wished for worse conditions than the ones which were given to me. Even 2008 came out a better year as far as equity trading goes – by a far stretch.
That said, while I cannot possibly be pleased with failing to reach my first landmark of getting to roughly $51,000 by January 1st, 2016, I can also say that in insight, finishing the year pretty much unscathed (-1.04%) turned out to be a feat of strength given the absolute carnage that the dislocating breadth and absence of asset decorrelation created.
The FRF Fund is ending 2015 with a balance of $46,233 which is $4,888 short of the target that I had set. There is one major caveat to this situation, however. As I mentioned in my initial post laying out my roadmap regarding cash contributions, the weak opportunistic environment provided by US equity markets led me to mechanically divert my cash to precious metals instead of the FRF Fund. The reason why I am holding gold & silver as an alternative over the FRF Fund will be explained in another post. But know that I am committed to only contribute to what is actually gaining the most traction. The current start of 2016 shows that such a move was right so far.
I am definitely keeping my eyes glued to getting back on track with the initial equity building plan for the FRF Fund. I will actually ramp up my contributions to catch up on it as soon as conditions improve. I am just not doing it blindly and I prefer to add a lot of context awareness to my plan to make it fit reality and get the best return for every dollar that I am putting to work.
As always, no one can predict the future and I cannot wait for US equities to show a little resilience so that I can make the Fund stick back to where it should be. Nobody likes to lag behind a well thought-out plan and I am totally committed to make this project mature in a successful and timely manner.
I will get back to you soon with hopefully much more straightforward and optimistic expectations.