Since my impression is that the Fund continues to nicely achieve its objectives, it's important that shareholders remember that those objectives focus on achieving strong absolute and risk - adjusted
returns over the complete market cycle (i.e. peak - to - peak, bull markets and bear markets combined).
Our stock selections have outperformed the major indices by a significant margin since inception, and I believe that our hedging approach is well - suited to reduce our risks while contributing to
our returns over the complete market cycle, if not always over shorter segments of that cycle.
Not exact matches
Likewise, investors might have believed that the extraordinarily elevated
market valuations of 1929 and 2000 were «justified» by the recent economic prosperity, but that did nothing to prevent the
market collapses that
completed those
cycles, with
over a decade of negative total
returns for the S&P 500 in both cases.
Meanwhile, extreme valuations imply the likelihood of steep
market losses
over the
complete cycle, and also for poor S&P 500 total
returns on a 10 - 12 year horizon, but valuations often have little effect on near - term
market behavior.
Since the inception of the Fund (as well, of course, in long - term historical tests), our present approach to risk management has both added to
returns and reduced volatility - not necessarily in any short period, but
over the
complete market cycle.
Respecting that distinction, without disregarding overvaluation, allowed us to come out ahead
over the
complete market cycle, as the 2000 - 2002 decline wiped out the entire total
return of the S&P 500, in excess of Treasury bills, all the way back to May 1996.
For investors seeking long - term investment
returns in value - focused stocks
over the
complete investment
cycle (bull and bear
markets combined), with added emphasis on reducing exposure to general
market fluctuations in conditions viewed by the Advisor as unfavorable to stocks.
For investors seeking long - term investment
returns in the U.S. equity
market over the
complete investment
cycle (bull and bear
markets combined), with added emphasis on reducing exposure to general
market fluctuations in conditions viewed by the Advisor as unfavorable to stocks.
According to Direxion's filing, dated December 15, 2017, its Bitcoin ETF seeks «to provide total
return that exceeds that of bitcoin futures contracts
over a
complete market cycle.»