January/February 2021 Update

Current Market Conditions

As I wrote in last month’s update, glimmers of hope are rising in the United States and around the world. As increasing numbers of people receive the vaccine, fears of COVID-19 should start to subside. As fears decrease, optimism will return in force.

This transition should create an extremely positive dynamic over the coming months, resulting in more-than-satisfactory investment returns.

In the US and international markets, GDP is accelerating and inflation has returned. Central banks remain unified in their “quantitative easing” messages. Money printing and currency devaluation (intended or not), are ongoing… and continue to lift asset prices around the world.

Strategies for Vailshire’s Separately Managed Accounts

In the current environment, there are a plethora of investment opportunities that can provide meaningful portfolio returns. This is a great environment in which to invest, as a large number of asset classes are performing well.

The challenging part for me (as your portfolio manager) is to hold a diverse array of the best-performing and safest assets. Given our continued market outperformance, it is quite clear that we continue to be on the appropriate track.

Depending on your financial objectives and individual account investment privileges, Vailshire’s separately managed accounts are currently allocated in the following manner:

  • 40-45% US stocks (large, mid, and small caps, including technology and energy stocks)
  • 10% Emerging market stocks
  • 5-10% Cash
  • 30-40% Bitcoin/Ethereum/Cryptocurrency proxies (based on personal preference and trading permissions)
  • 5% Commodity-based equities

If you are a Vailshire Client, feel free to log into your Vailshire-managed account(s) at Interactive Brokers and see how your own portfolios are positioned. (It’s a good idea to log into your accounts at least quarterly, just to make sure your settings and demographics are up to date.)


Vailshire’s full-cycle investment approach continues to perform exceedingly well in a confusing and often tumultuous world. I am thankful that you continue to put your trust in Vailshire’s innovative, and often unconventional, methods.

If you know of a friend or family member who would benefit from our thoughtful approach, I would be honored by the referral!