Market Activity


TPP v Global Stock Markets

Market Activity

TPP v Global Stock Markets

How did the TPP traders fare in 2022?

January 16, 2023

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A review of 2022:

It's safe to say 2022 was a tough year globally in the financial markets. In fact, it was the worst year for stocks since the credit crunch. The MSCI All Countries World Index was down -18.36%!

Meanwhile, today it gives us great pleasure to inform you that the strategies showcased on The Portfolio Platform recorded an average increase of 4.06%.

The stock market decline had a serious negative impact on economies throughout the world. In the United States, the S&P 500 stock market index peaked in January 2022 and began a gradual decline. In September, the S&P 500 would experience its largest drop since the world locked down in March 2020.

As of January 3, 2023, the S&P500 index had fallen 20% and the Nasdaq Composite 35% from their all-time highs.

The S&P 500 index peaked at 4,796 on January 3rd last year and reached a bottom in October.

In response to the inflation surge, the Federal Reserve rapidly raised interest rates which further led to a decline in investor confidence. Markets favour low interest rate environments because they are conducive to future growth: when interest rates are low, companies can increase spending, which leads to increased stock prices.

As the United States gross domestic product shrank in the first quarter of 2022, fears of an economic recession contributed to the decline in equity prices. The gross domestic product (GDP) decreased at an annual rate of 1.6 percent in the first quarter of 2022, according to the "third" estimate released by the Bureau of Economic Analysis.

By June 16, 2022, the S&P had fallen 23.55% from 4,796 to 3,666, though its currently unknown if the index will plunge below the level. The Dow Jones fell 18.78% since its January high, while the Nasdaq Composite fell 33.70% from its 19th November 2021 high.

This fall has impacted the performance of equity funds around the world. Standard funds are long only, meaning all they can do is buy. They can move to cash, but that is a very dangerous game if the markets don’t continue to fall.

This is the reason The Portfolio Platform has once again outperformed the All World Index. It’s easy to do well when markets go up, but when they drop, capital preservation is key and not being able to go short the market really is adding to risk not decreasing it so standard funds will always do badly.

If your argument is that over time, funds will do better then hopefully this will show you otherwise. Here are our top 3 most subscribed strategies over the last 3 years:

It is clear The Portfolio Platform has outperformed the relevant benchmarks in the 3 years since inception. This year, after 2 fantastic years, we managed to make an average of 4.03%. This means that over the last 3 years TPP has averaged returns of 41.5%.

However, although we are very proud of the excellent performance of our traders in year 1 and 2 of TPP's journey, they were assisted by a vibrant market place.

With the average global index almost negative 20% on the year in 2022, a positive performance of over 4% in this climate is probably equally as good.

Here are the individual trader’s results:

With a mix of strategies an absolute portfolio can be built that aims to return regardless of market conditions. It was a very very tough year, but to come out with an overall positive result is a true credit to our traders.

Looking at the results of our trading teams, some of the 'long or flat' strategies did exceptionally well. They also managed the excessive volatility with suitable aplomb.

There will be a few of our traders who will be looking to bounce back strongly from last year, and a couple will be disappointed with their performance, but their track records suggest, that whenever they have a rare negative year, the following one tends to be a very successful one.

We certainly won't be betting against them.

To all our clients, we are glad you have been enjoying the experience and 2023 will no doubt be a great one for us and our traders.

If you would like more information on how to set up a portfolio and link it to our professional traders, please click here and get in touch.

Our portfolio biases currently:

At the back end of last year, the traders on TPP profited on their mid term 'buy' positions, as well as their short term positions both on the 'buy' and 'sell' side of the market.

Over the last couple of weeks, many of our strategies have evolved into a SELL BIAS.

Is there something in the air?

Do our world class traders know something that many other investors don't?

Stay tuned to find out.

Our traders focus on the markets that everyone knows and can relate to. Whether it's the FTSE, CAC, DAX, Nasdaq or S&P (amongst others) there are always opportunities, regardless of the market climate.

Over 2023 will their be strong directional movements either way?

Probably not.

However, if our traders can evolve with an ever changing market climate- we would expect 2023 to be an excellent one for us.

We'll only ever let traders with extensive track records showcase their strategies on our platform. It gives us confidence, and we hope it provides the same comfort for our clients.

If you are interested in building a portfolio that aims to yield a minimum of at least 2 x market benchmark per annum, by utilising the elite trading strategies showcased on TPP- contact our team today.

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“TPP might just be about to revolutionise investment for the retail market.”

- London Stock Exchange 2020