A quick catch up on the PIP-VEVE strategy:
End of the last cycle
We sold out of VEVE on 31 July when the price hit our target during the day (a.k.a. “intraday”). This was a departure for us, previously we have waited for the price to close above our target price.
However, we had been in the trade for 5 months and I felt the risk of acting during the day was worth taking.
In the end everyone got out at the same price.
VEVE dipped after 31 July – it was not until 22 August that the price hit our target again.
VEVE currently
Lower short-term interest rates are proving to be a short-term tailwind for most equities and your general portfolios have been doing very nicely. VEVE has also continued to climb setting a series of new highs, the latest being yesterday (2 October) at 92.98.
I think we can expect new highs to continue to be hit over the next few weeks.
PIP-VEVE and the new TCFP Funds
My current thinking is that the PIP-VEVE strategy and the new TCFP funds can happily coexist together.
We can mix and match the new funds, taking into account your PIP-VEVE allowance, and keep to the asset spread, risk profile and liquidity level you need.
If my thoughts change on this, I will let you know.