An adequate return for the risk taken

7 months ago I made these macro Buy calls on Spain’s IBEX and U.K.’s FTSE 100 equity indices.

Since then they have risen 33% and 19% respectively.

Although you can always dig around to find better comparative returns, when adjusting for the risk taken, I’m quite pleased.

In other words, it’s more than an adequate return for the risk taken.

In fact, there is probably too much complacency and expectation about what is considered an adequate return.

Incidentally, they are nearing my ‘sell’ signal.

May 5, 2021

by Rob Zdravevski

rob@karriasset.com.au