October brought widespread losses to equity markets as higher volatility unnerved investors who cannot rely as much anymore on monetary policy support or buy-the-dip bounce backs given the relatively high valuations after a record-long bull-market. Most indices had erased all year-to-date gains by the end of October. Following months of divergence between US and other developed market equities, this month saw a parallel drop across the board, leaving relative valuations unchanged.
As noted previously, a long-term perspective is necessary to evaluate if risky portfolios provide appropriate reward.
Persephone provides an update on the performance of portfolios managed by its platform robotIQ. Since July, these portfolios, which follow a target risk approach and range from 5-25% annual Value at Risk, are compared to other robo advice offerings which are benchmarked by brokervergeich.de [1-3].
Based on Brokervergleich’s October stats we have updated our comparison aggregating the last four months (July – October).