As many of you know, our web site was “down” for a week. We had a glitch with some third-party software (essentially, the software got old and stopped working) and it literally took a week to get the darned problem solve. Please be aware that this had NOTHING to do with the actual trades themselves or the portfolio management, which is handled on a separate account with a FINRA-licensed (and SIPC-insured) brokerage.
Fortunately, I had a list of all of our subscribers (on a separate sheet) and sent an e-mail to each of them about our trade announcement and our September monthly update. For the rest of you readers, who might not be on our subscribers list, following is the text of the September update:
The S&P 500 had a spectacular month (up 1.72%), but that barely makes up for its dismal performance in August (down 1.81%). Conversely, ACCRE had a slight down month (-0.4%) but August was one of our best months ever (up 3.6%). As such, we continue to lead the S&P (and the S&P REIT index) in total returns since inception.
One other item caught my attention this week. News reports noted that this was the first time in a while that the S&P 500 had three consecutive “up” quarters, which is indeed great news for the market. However, with that bit of info, I wanted to compare the S&P’s performance to ACCRE’s for the past three quarters. The chart following “normalizes” both indices to 1 as of January 1, and the rest speaks for itself:
I’ve long noted that real estate returns should be examined with a long-term horizon. The chart notes that for most of the year, ACCRE tracked the S&P nicely, albeit with considerably less volatility. However, starting about mid-summer, we really took off compared to the S&P. I suggested this may be a flight to safety, and indeed the real shift occurred when the S&P suffered its summer melt-down. That said, ACCRE ends the first three quarters of the year up 23%, while the S&P is up 18.6% for that same period.
I will almost certainly be making some portfolio shifts this month. As always, subscribers will be informed when I make such trades, and the new portfolio makeup after those trades are made. Y’all have a great October!