Dear client or friend of Vailshire Partners LP,

Greetings from Colorado Springs! I hope this quarterly memo finds you well.

The State of the Economy

The health of the President, his administration, and the economy are at the forefront of our nation’s mind as we approach election Tuesday in early November. As uncertainty about election results and coronavirus containment/immunity persists, so does market volatility.

September and October are historically difficult (read: down) months for US equities and Bitcoin during election years, and this has again proven true in 2020.

Thankfully, the historical returns for both equities and Bitcoin once presidential election results are known are generally quite positive… sometimes surprisingly so! And for this, we are positioning Vailshire Partners LP accordingly.

For now, a Congressionally-approved fiscal stimulus looks increasingly unlikely, given the partisan bickering and game theory. My opinion is that if additional money is to be printed out of thin air, then the least our government can do is put it directly in the hands of Americans, many of whom are suffering greatly from the Covid-related business closures and Depression-level increased unemployment.

The Federal Reserve continues to “do its part” by maintaining ever-increasing supplies of money and securities (such as US Treasuries and other fixed income ETFs), as shown by the following charts:

M2 Money Stock (as of 21-September-2020)

Federal Reserve Bank Credit (as of 1-October-2020)

Federal Reserve: US Treasury Securities Held Outright (as of 1-October-2020)

Where Congressional fiscal policy is lacking, the Fed’s monetary policy is undeniably trying hard to pick up the slack!

Tumultuous times call for deft asset allocation and management. With this in mind, let’s see how Vailshire Partners LP has performed in 2020 relative to its peers.

Vailshire Partners LP Annual and Quarterly Performance

*(Starting date: 27-January-2014)

As the chart reveals, through 30-September-2020, Vailshire

(Bloomberg) — HSBC Holdings Plc will aim to reach a net-zero carbon client portfolio by 2050 in a step to align its business activities to the goals of the Paris climate agreement.

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The London-based bank, which has previously come under fire for financing harmful environmental activity, also pledged to provide as much as $1 trillion over the next decade to assist customers in reducing their carbon emissions. It’s also committed to achieving net-zero emissions in its own operations and supply chain by 2030.

“As we enter a pivotal decade of change, we have a landmark opportunity to accelerate our efforts to build a healthier, more resilient and more sustainable future,” HSBC Chief Executive Officer Noel Quinn said in a statement. “Our net-zero ambition represents a material step up in our support for customers as we collectively work towards building a thriving low carbon economy.”

HSBC follows JP Morgan Chase & Co.’s announcement on Tuesday that the U.S. bank is setting climate targets for its financing portfolio and planning a net-zero carbon footprint for its own operations.  Morgan Stanley said in September that it plans to eliminate net emissions from its financing activities by 2050.

HSBC also plans to work towards a “globally consistent, future-proofed” standards for measuring financed emissions and the carbon offset market. Other measures announced by the bank include regular disclosures on its progress and an assurance it will encourage its clients to do the same.  Earlier this year, HSBC launched a $1 billion asset management arm with Pollination Group, a climate change advisory company, to support investment in natural assets such as water, soil and air.

HSBC has come under sustained pressure from environmental groups after providing loans worth billions of pounds for companies involved in deforestation. It ranks as Europe’s second-largest financier of fossil-fuel