A more anxious market

This past week has been a transition period for System HAG as well as the broad markets. As inflation worries have begun to enter financial markets on a permanent basis, System HAG has realized significant losses.

Here is a possible cause: HAG buys stock when anxiety levels are much higher than average, assuming most states of heightened anxiety quickly revert to states of neutral emotion. However, during some transition periods, heightened emotional states do not dissipate quickly. The poor results of HAG this past week have indicated that markets have entered a longer-term period of inflation anxiety. The "neutral" state is a less bullish, more anxious market.

Ultimately, System HAG should benefit from more anxious trading, but the transition to a higher anxiety period has yielded losses.