The L.O.R.D.S. Strategy – Quite a Bit Better Than Bitcoin

        I wish you a happy and successful 2023.  As we all know, 2022 was a difficult year across the board with the average of the S&P 500 & Nasdaq Composite, which best represents our investment strategy, being down a negative -25.33%.  Our Fidelity L.O.R.D.S. Strategy fell 4% less, at -21.57%.  While these are significant negative returns, this is nothing compared to the precipitous drop-off seen in many cryptocurrencies.  Bitcoin, which was touted as a hedge against inflation, posted a negative -64.27% for 2022.  While some still have profited very well from Bitcoin and other cryptocurrencies, its volatile history has caused significant losses for many.

          Looking back over the past 5 years to December 17th, 2017, Bitcoin had hit its then all-time high of $20,089.  Its success that year had everyone talking about it.  Unfortunately, for those chasing returns who invested at that time, they were faced with an 81% drop-off by the end of 2018.  Bitcoin’s average annual return over the past 5 years has been a negative -3.51% since December of 2017.  Our Fidelity L.O.R.D.S. Strategy during that same 5 years, has been a positive 10.02%.   If you have questions or would like to speak about your investments, please give me a call.

        Sometimes percentage returns are hard to understand, so I want to clarify something in my last email.  If you had invested $10,000 in Bitcoin 5 years ago, it would have turned into $8,364.   If you had put the same $10,000 into the L.O.R.D.S. Strategy, it would have turned into $16,120.

Sincerely,

Samuel Schaeffer