Asymmetry: The Financial Secret That Can Earn You 10X Returns

Canadian Banks

We initiated our initial exposure in Canadian banks towards the end of 2008. Our rationale was due to the fact that Canada has a concrete banking system that controlled mortgage lending and remained solvent during the financial crises (unlike the US). We reduced our exposure 5 years post the 2008 crises, generating approximately a 2.5x return.

USD/CAD

In 2011, we went long the USD/CAD pairing. Given the strengthening CAD due to rising commodity prices, a sound economic recovery and a strong technical story, we believed that the USD was relatively undervalued at this point. The CAD reached parity twice before, in 2007 and in 1970. We exited with a 30% gain after holding the position for a few years.

Crypto (BTC)

Q2 of 2017, we initiated our first position in Bitcoin around $1250 when it reached the same price as gold. Our rationale was the asymmetry presented in this new and unique asset class (risk $1 to make $3 or more). We took some profits along the way but still hold a core position. We are up close to 10x since then. Small exposure to BtC actually increases risk-adjusted returns in a traditional portfolio (uncorrelated with broad markets).

Precious Metals

We initiated our first exposure to gold in 2018. With record levels of newly printed money from the developed world, a few years of underperformance and with commodities trading at historic valuations relative to the broad indices, the case for the metals becomes vital. We are up close to 50% since our exposure to this sector and still hold a core position.
Ray Dalio: "If you don't own gold, you know neither history or economics."

What is Asymmetry?

Asymmetry is an investment strategy never discussed in mainstream press.

Very few investors know this strategy... maybe one in a 1,000. And less than one in 100,000 knows how to use it. But this is how investors turn small amounts of money into millions.

Have you ever seen conventional advice produce returns in excess of 10,000% (turning $10,000 into $1 Million or more)? You'll never hear about it on financial television, or read about it in the financial press. Because asymmetry is Wall Street's best kept secret.

But we'll explain how it works... and how YOU can use it.

The Power of Asymmetry

We all learned about symmetry in school: one side of something is the mirror image of the other side. For example, when we divide a circle in the middle, the 2 sides are symmetrical.

Aesthetically speaking, symmetry is usually a good thing. But when it comes to finance, symmetry is your enemy.

If you risk $1,000 for a chance to make $1,000, you're making a symmetrical bet.

If you risk $1,000 for a chance to make $10,000, you're making an asymmetrical bet.

Which bet would you make?

Even though the right answer is obvious, most investors make the wrong bet... or even worse: they're risking $1,000 for a chance to make $100 or less. Why? Because conventional advice says so.

Where to Find Asymmetric Bets

So, how does one turn the odds in their favor? Where does one find asymmetric bets?

That's where we come in.

Our investment strategy research focuses on deep value investing principles (more on that below) coupled with a behavioural and contrarian approach. We are asset class agnostic, meaning that we tend to buy what is cheap and sell what is expensive, regardless of the asset class.

We provide content on a wide variety of asset classes (ETFs, precious metals, commodities, etc) along with market commentary and macroeconomic trends.

Our goal is to provide you with actionable insights: sectors and specific ETFs that fit our asymmetric bet criteria. It's then your decision to make the bet or not.

Deep-Value Approach

"Value investing has long held a structural advantage over growth investing when considered over multiple market cycles. In fact, if one were to have invested $1 each in value and growth stocks in December 1927, the value investment would today be worth nearly 18 times the growth investment."

"History demonstrates that value investing will thrive over time, and that even when out of favor, the importance of well-run companies with strong fundamentals is significant. The bull market from 1982 through 1999, widely considered one of the longest in history, was fueled by a value cycle that followed a period where stocks were acutely undervalued in the late 1970s and early 1980s."

"There is no question that value investing has been out of favor the past decade; there is simply no debate. We do, however, feel strongly that a broad view of market cycles, coupled with a reflection on history, are powerful indicators that a comeback for value investing is imminent. We caution investors against underweighting value investments, especially now, as history has shown recovery continually follows periods of drawdown."

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Disclaimer: Our service should not be used as financial advice. They are merely our views of seeing the world and interpreting market events. The data on this website is for information purposes only. It does not constitute investment advice or investment recommendations.