Market Commentary SP Trader
It does appear we are now in a bear market and recession. We believe that this market will be more volatile on the short side in the coming months. With the slowdown in the economy, company earnings will be down substantially and the S&P will reflect the new price multiples inherent in lower earnings expectations. Since we are going through a serious price deflation of all asset classes, consider Long/Short funds for your asset. As in all bear markets, sharp rallies are followed by sell offs of all the rallies with more volume on the sell side. The bull is over and investors should act accordingly to protect their assets and take advantage of the new opportunities that exist.
Although volatilities have been much higher we have limited our draw downs by not overly exploiting volatility at this time.Funds that did paid a large price and many were down over 30% as a result. We, SP Trader, expect to maintain low draw downs with high returns to our investors.