The Hidden Jewel In MarketClub

As we begin the second quarter of 2014, I want to bring to your attention one of the "hidden jewels" of MarketClub.

A Portfolio With Results!

MarketClub's World Cup Portfolio (WCP) has never had a losing year in the 6 1/2 years that we have been tracking this portfolio.

When this portfolio was constructed almost 7 years ago, it was designed to include common elements that we thought would be important to the world. With an ever-expanding population worldwide, food is going to continue to be a major item. Likewise energy is going to play an increasingly important element in the world's economy. Over the years, the Dollar has also had its ups and downs and provided some great opportunities. Lastly, we looked at a store of value that has been in place since time begun and that is why we wanted to be actively involved in the movement of gold.

With these core components in place, the World Cup Portfolio was born. It was intended to be part of an overall bigger portfolio, but can function as a stand-alone portfolio.

Diversification Works

According to extensive academic research, beginning with the landmark study of Dr. John Lintner of Harvard University in which he wrote that, "the combined portfolios of stocks (or stocks and bonds) after including judicious investments in leveraged managed futures accounts show substantially less risk at every possible level of expected return than portfolios of stocks (or stocks and bonds) alone."

To underscore Dr. John Lintner's research on diversification into nontraditional asset classes, in 2008 when the stock market crashed, the World Cup Portfolio made an astounding 500% return on invested capital. Admittedly this was an extraordinary time financially in the world, but it proves that diversification into a nontraditional asset class works, and that it is possible to make money when everything else is heading to the basement.

As I mentioned before, this portfolio has never failed to make money in the 6 1/2 years we have been tracking it. That's largely because the asset classes within the WCP are non-correlated in and of themselves. What that means is the price of crude oil doesn't necessarily affect the price of gold or the price of soybeans.

WCP Cumulative Quarterly Chart

There are no guarantees in life and in trading as we all know, but by diversifying using the six markets of the World Cup Portfolio, it has yet to have a losing year! The World Cup Portfolio is a proof of concept and a very good one at that, but remember there are risks in any investment and this one is no different. You should not take out a bank loan or trade with the rent money. No results are guaranteed and past theoretical results are not indicative of future results. The World Cup Portfolio is made available for educational purposes only.

Signals, Trading Rules and Results

Members have access to the signals for each of the six different markets for this portfolio, as well as the trading rules and past results.

World Cup Portfolio signals

See the quarterly returns for each of the six asset classes.

See the cumulative annual results for the entire portfolio.

This portfolio is not suitable for retirement accounts as there will be times when you will be going short the market and this is not allowed in 401K or IRA accounts. I recommend that you first follow this portfolio on paper to become totally familiar with how it works and how it can work for you. By familiarizing yourself with this approach and incorporating it into a larger portfolio I believe you can greatly reduce your risk and enhance your returns much like Dr. John Lintner stated in his landmark study.

Every success with MarketClub's World Cup Portfolio (WCP) in 2014,

Adam Hewison
Co-Creator, MarketClub

3 thoughts on “The Hidden Jewel In MarketClub

  1. I'd be interested in hearing feedback from MC members who have participated in the WCP. Do the signals work the same way? What is the minimal amount of money needed up front to participate in this program? Do you need a special brokerage account with an exchange? Does the portfolio require daily oversight?

    Thanks in advance for any and all input.

    1. I have the same questions also. When and if you get an answer please forward me a copy.

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