Recent History & New Developments
for 2025 and Beyond.
OmniFunds v2 was released in July 2024. From there through December, they outperformed the Market by as much as 8-to-1 in live trading. I've interviewed a number of OmniFunds customers, including Nick Wold, who gained 87% in his margin account from August to December. Watch Interview
Most Version 2 OmniFunds are positive since they were deployed. For example, NAS100 Medium Growth, shown above, is up 47%. However, the market hasn't fared so well. As of today, the S&P 500 is at 0% growth and shows signs of going lower. All OmniFunds are in cash awaiting The Return of The Bull.
A Volatile Market in Q1 of 2025
From December 18 to present, the Market went through a series of unusual market events which are listed below.
- Fed Funds Announcement - On December 18, The FED held an FOMC meeting, implying it was unlikely to lower rates any time soon. The Market dropped 3.5%.
- Up 4, Down 4, Repeat - In early January, the NASDAQ went into a "Cyclical Mode" where it gained several percent over 3-4 days, only to turn down to where it started in the same amount of time, several times. Our Researcher implemented a way to detect this so OmniFunds can go to cash should this occur in the future.
- Chinese AI? - On Sunday, January 23, news coming from China indicated the Chinese had built a superior A.I. at a fraction of the cost. This announcement caused NVDA and AVGO to drop 18% each Monday morning. We were in AVGO.
- Tariff Announcement - As the political climate heated up with uncertain news surrounding Tariffs and other events, the Market became unstable, going into a free-fall on February 21 and losing over 22% by April 4.
Counter-Measures
I put my wife's retirement account in this OmniFund on January 28, and since then she's had about a 2% Draw Down and is up about a percent as of April 4.
After the market began showing heightened volatility, we issued posts in our private OmniFunds Circle Community*, suggesting that users reduce allocation and/or switch into less-aggressive OmniFunds, like Safe Harbor Diversified Low Draw Down.
The OmniFunds Evolution
- Avoid Bear Markets by Moving to Cash
- Take Full Advantage of Bull Markets
Rather than move to cash in down markets, users have asked if there is a way our OmniFunds can make money in market declines. The answer is yes, with Inverse ETFs and Defensive Stocks...
Trading Inverse ETFs
Inverse ETFs go the opposite direction of a target Index ETF. For example, QQQ is the most liquid ETF representing the NASDAQ 100. The inverse ETF, PSQ, moves precisely the opposite to QQQ. So, in a down market, we can buy PSQ. The only problem with doing this is the market is upward-biased, so we must be relatively certain the Nasdaq is headed south before we buy it.
We have been experimenting with hedge methods that purchase inverse ETFs alongside Long positions in stocks when weakness enters the market. The idea is to "hedge" potential pull-backs, rather than try to make money by switching 100% into the inverse UNLESS the market is "tanking" as it recently did. In that case, we will let the inverse trade the account.
Results so far are very promising, and I expect to make an announcement in April about our findings and ideally, the deployment of new Portfolios that implement the hedge.
Switching into Defensive Stocks
Defensive Stocks are stocks that are mostly impervious to market corrections, like staples drugs, and utilities. They are often purchased as a hedge against Bear Markets.
Procter & Gamble (PG)
Campbell's Company (CPB)
Constellation Brands (STZ)
Brown-Forman Corporation (BF.B)
GSK (GSK)
West Pharmaceutical Services (WST)
Coloplast (CLPBY)
Zimmer Biomet Holdings (ZBH)
Danaher (DHR)
Ambev (ABEV)
Awaiting The Return of The Bull
Here at Nirvana Systems, we are never "done" improving improving our products, and OmniFunds is no exception. That's why your OmniFunds investment will continue to grow in value. As the Market has declined, our researchers have been hard at work on the additional enhancements discussed above.
We expect the current research to yield robust Portfolios we can add to OmniFunds this month, and will keep subscribers updated in Circle. The economy may be rather unpredictable right now, but I personally believe 2025 is going to end up as an incredible year for stocks. The Bull has always come back.
Ed Downs
CEO, Nirvana Systems, Inc.