The market has been moving fast and furious in the last few weeks. The trading systems have caught a few up days and caught a lot of down days. The result is the systems are down slightly more than the S&P 500 at this point. This drawdown, although substantial, is not unexpected in consideration of the speed at which this market has moved.
It is good at these times of near panic to remember we have invested in index funds, which represent a diversification of between 100 and 2000 different companies’ assets within them. The likelihood of them going to “0 “is remote.
The recovery of our assets is a critical element of the performance of the equity systems we use at Scarecrow Trading. It took the S&P500 66 months to get back to where it was at the beginning of The Great Recession. Crow Chaser recovered in 19 months. By the time Crow Chaser reached the 66 months the S&P500 had taken to recover to “0”, Crow Chaser had gained 236%.
Know that all of us here at Scarecrow Trading are working from home as requested. We hope all of you are also safe and with your loved ones.
King Soloman’s ring – “This to shall pass.”