We closed out the QQQ (NASDAQ 100 ETF) long/short positions yesterday. This morning we just sold RSP, ROBO and UBOT due to weakness in their respective sectors. We are still holding the S&P-500 long/short combo to neutralize our models and to not incur capital gains on recent profits. If you have any prospects, friends, relatives, etc., that are 100% long in a “pie chart” investing style, you really need to get their attention now.
Yesterday, I spoke with a client who gave me part of her money as a test on August 18, 2022. She is +2.90% through yesterday. She left $815,000 with her father’s advisor. It is now worth $650,000. People are listening to the talking heads on investment shows and the Jim Cramer crowd. It is so sad. Yesterday, a talking head on CNBC Power Lunch spent time ranting and raving about how the 60/40 investment model blend is alive and well. In all my time listening to CNBC and reading over 4 hours a day, I have never heard or read one word about the AGG (The benchmark for bonds) being -15% last year. Nowhere, no one, is talking or writing about it. Then again, probably over 90% of licensed advisors don’t know what the AGG is.
BTW, most of you may have already heard or read about this, but it’s important enough to mention again. As a barometer of how bad the financial climate was in 2022, there are only two times in the last 100 years of stock market history when both the S&P-500 AND the AGG were both double digit negative at the same time: 1932 (Great Depression) and 2022! There was no safety in either equities or bond/fixed income portfolios. Noodle on that!
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