The "Keep It Simple" Portfolio

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Last updated on September 09, 2023 at 08:52 GMT. Next update before September 10, 2023 at 16:00 GMT.

Portfolio overview

What happens if you go long a stock index that always goes up and two asymmetric bets in the middle of bear market then wait 5 years? We are about to find out.

Performance

Bitcoin and Ethereum are the most volatile assets of the portfolio but given that they account for less than half of the total value we have only had mild drawdowns so far.

KiS portfolio performance.

Composition

The original composition of the portfolio was:

  • SP500 (via SPY) with 40% of the initial capital.
  • Bitcoin (via spot BTC) with 20% of the initial capital.
  • Ethereum (via spot ETH) with 20% of the initial capital.
  • Cash reserves for the remaining 20%.
KiS portfolio composition.

Correlations

Since the inception of this portfolio we have been dealing with highly correlated assets. The bet is that as over the long run the correlations will come down significantly.

Strong correlations between the assets in the KiS portfolio.

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