COST AVERAGE

Title: COST AVERAGE
Format: 200X240 cm
Technique: acrylic, collage and varnish on canvas

If we take a time span of 10 years, we would see that around 90% of all investment funds are not able to exceed their benchmark. An intelligent conclusion would therefore be to invest on the basis of index funds that replicate the market as best as possible. Now, what profitability does the market give us? In Spain, if we take our selective Ibex 35 as a reference, in 25 years we have an average annual return of around 5%, which together with dividends, 4% (one of the highest dividends in the world) would reach 9%. As professor Jorge Del Canto recommends, it is safer to invest in 'indices than in companies since the index does not fail, but the companies that form it, and it is the system of the index itself that replaces and changes the worst companies

According to Del Canto, the way to invest and benefit from a good annual average, and even exceed our index from a passive management, would be to average with systematic contributions, as long as the index is below the regression average, and not investing when it is above, exceeding the fund or disinvesting when the Ibex is above the standard deviation, which is 25%. If we add to this the use of call and put options on ibex at one year, and calculate with that 25% -maximum deviation- we could get returns between 10 and 15% APR.

This is a brilliant way for any retail investor and any individual to acquire in a "magical" way the ability to overcome most managers and funds of the world, without having any economic knowledge, and that is why I chose this idea as an authentic "work of art".