VIG Investment Newsletter
Posts
The Vig Company Announces 2021 Results!

The Vig Company Announces 2021 Results!

January 02, 2022

Hello:

Here is our V2 Newsletter performance for 2021 and our recap of the year.

V2 PERFORMANCE

2021

V2 +33.44%

SPY +28.59%

3-Year Annualized Return (2019 to 2021)

V2 +83%

SPY +26%

3-Year Total Return

V2 +515%

SPY +99%

5-Year Annualized Return (2017-2021)

V2 +69%

SPY +18%

5-Year Total Return

V2 +1,291%

SPY +132%

V2 Ranking vs. All ETFs (2,860)

TOP 10% 2021 (#243)

TOP 1% 3-Year (#9)

TOP 1% 5-Year (#4)

(Industry ETF data from Morningstar and Etrade ETF screeners.)

RECAP

V2 had a good year.

Even though the performance this year was less than our historic averages we did achieve our only two goals:

We seek to beat the market (as defined by the Sp500) each year.
We seek to have significant outperformance over 3 and 5 year time periods.

We are proud of our performance and take even greater pride in our long-term results.

This was one of the more interesting years for the V2 Model. In a typical year, we get the opportunity to short the market - which normally gives us the ability to stretch our lead. That did not happen in 2021. We never went short. The market did, however, have a number of quick pullbacks highlighted by quick bouts of volatility. That was enough to have us hedge us to cash for short periods of time. This protective element to the Model slowed our growth.

For the first time in over 40 years, we had rising inflation and increased potential for rising interest rates. That market experienced sector rotation market at different periods moving from tech and growth assets to more value-centered investments (that would benefit from inflation). Then back again.

We did not see strong mathematical, extended trends develop and the pullbacks were just enough to keep us honest. Directly related to this we had more holding and allocation changes than in any year since inception.

We were busy!

The V2 Model performed exactly as expected.

We do not forecast, but looking into 2022, we do expect rising interest rates, inflation, and volatility to continue - but slow its expected rate of change. Probabilities would indicate we see a full-on 20% or greater correction at some point. And, we are hopeful that Covid begins a true wind down.

We are optimistic the V2 Model is up to the challenge.

PLAN

Our plan for next year? Market trends may change and they may change rapidly. We will stay in the now, be nimble, and be vigilant to changes in either direction. We will follow the math.

Distance=Victory

Chris

Use of The Vig Company LLC information and newsletters herein is at one's own risk. We are simply sharing the results of our Models. Nothing should be construed as a recommendation or an offer to buy or sell any securities, and we are not liable nor do we assume any responsibility for losses incurred as a result of any information provided or not provided or not made available in a timely manner herein or on our website or using any other medium. We cannot guarantee the accuracy and completeness of any information furnished by us. We may buy, sell or hold any security listed in our information at any time. We are not registered investment advisors and have no understanding of your personal financial situation, risk tolerances, or investing objectives. Any investment decisions you make are your own own. Please do your own diligence when investing your hard-earned money.