Took a short in ARKK!

Quick update...

Finally, I put on a long on SARK (e.g. a short on ARKK) yesterday.

It behaves very weak and I wanted to have a bit more short exposure.

Volatility adjusted I am now basically long 631k and short 387k, longs are still small cap value momentum with a ton of inflation stocks.

Also, XLU, XLP and XLV behaving really well, but those are all defensive exposures.

Imagine where the SPY would be without those exposures being up.

So, one could say, all good, just be long the stuff that is working.

Well, well, well, as I have written this week, this might go on for a little while, but that might be the last rally before everything (including defensives!) goes down.

THIS is not a market to be long only, since we do not know how long the longs keep working.

Have a look at XLV long 75% and SARK long (e.g., Short ARKK) 25%.

Stuff like that does not happen in a healthy market.

Those defensive exposures suck you in in the last leg up until they turn too (yes, they tank less in a crash, but they tank too!).

Because I get some questions for a risk off portfolio (inflation / delfation) let us build one:

Here are the weights:

We will define the time from now (Tuesday, 12th of March 2022, to be fair) on as out of sample (OOS) and until now as a Backtest. Let’s see how it behaves.

And yes, I will update on it regularly and I will keep you informed as soon I think a different risk on exposure is opportune.

Have a great weekend!

Disclaimer: For educational purpose only. Not investment advice. Seek professional advice from a financial advisor before making any investing decisions.