Chart shows performance of DataSwarm Health Technology Portfolio (blue line) against S&P (red line) from 2nd March 2020 until 9th July 2020.
At that moment – the ‘Covid Crash of February 2020’ as we could now describe it – we watched the DataSwarm System with fascination to see what it would tell us to do. Since the beginning of December 2019 to that point, it had guided us correctly – the DataSwarm Trading Fund (DTF) having delivered a c 12% gross return overall on the initial investment until just before the crash, against a rise in the S&P of c 7%. But where would it lead us now, we wondered…? Here’s the story.
Health Technology – Sniffing out a 27% Rise
After initially telling us on 28th February to ‘sell all’, the DataSwarm System quickly recalibrated and, following ‘the swarm of ideas and behaviours of the crowds’, blended with stock analysis and industry trends – pointed us directly towards the Health Technology Sector as the sector on which to focus. Perhaps, given the situation with Covid-19, this was an obvious choice. But its ability to pinpoint specific stocks within this Sector to aim for, as well as highlighting the exact moment to buy, gave us a clear advantage over the fading S&P.
As can be seen from the above chart, initially the stocks bought were losing ground, but the S&P slipped away even faster – and the system continually pushed us towards adding further health technology stocks – until by the end of March, about one third of all stocks in the DataSwarm Trading Fund were from this sector.
By listening to the System, we avoided the worst of the March S&P dip – and the stocks the System has picked since then have been pulling away from it ever since. The 27% increase by 8th July which we have been achieving is not to be sniffed at.
But is Health Technology the New Gold in this New World?
Fears surrounding the pandemic since 28th February have often created moments of volatility in the market. Since then, whenever the S&P has weakened, our Health Technology Portfolio has strengthened (see the jumps in the chart above).
Gold, as always in times of uncertainty, has been climbing frenetically, rising 16% since 2nd March until 8th July. Yet our Health Technology Portfolio is beating it hands down at 27% – sniffing out the healthy outliers, and snuffing out its weakest.
In these abnormal times it would appear that some glittery things of the past may now just be plain old gold. You can no longer afford to sniff at the snuffles.
UPDATE: Yesterday (13 July 2020) the Nasdaq Composite tumbled 2.1% after setting a new intraday record at the start of trading and the S&P 500 fell 0.9% – but our DataSwarm Health Technology Portfolio rose 2.53% during the day. Proof if you needed it that Health Technology is indeed a new gold…
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