Your call to buy back SARK at 40 to 45 range was spot on in hindsight. I took a position in SARK this Friday too as I saw the last high beta holdout in BTC drops. I've noticed you took a short position in the Russell 2000. I assume it's because it shows relative weaknesses to other indexes like SPY and QQQ? IWM tends to drop first compares to the big boys?
iWM is a good short because it does not rip 30% against you in two weeks like ARKK. Also it correlates with my small caps. In general High Beta nd Small Caps are not doing well in an inflation (read stagflation) regime and in an deflation regime. Same with high beta trash like ARKK, does not well in inflation and not well in deflation, but very well in golidocks and reflation. To make sure the ARKK short does not hurt you too much in a bear market rally, you have to calculate the Beta of your long portfolio and addjust the size of the ARKK Short.
Ah that's true. IWM belongs in the bottom 5 equity style factors in inflation and deflation. My RARK is 5% so it's manageable. So a 8% RWM position sounds reasonable. I'm a subscriber to 42 Macro too. I use Mr. Dale's work and your work to flesh out my portfolio. Thank you Andreas.
Your call to buy back SARK at 40 to 45 range was spot on in hindsight. I took a position in SARK this Friday too as I saw the last high beta holdout in BTC drops. I've noticed you took a short position in the Russell 2000. I assume it's because it shows relative weaknesses to other indexes like SPY and QQQ? IWM tends to drop first compares to the big boys?
iWM is a good short because it does not rip 30% against you in two weeks like ARKK. Also it correlates with my small caps. In general High Beta nd Small Caps are not doing well in an inflation (read stagflation) regime and in an deflation regime. Same with high beta trash like ARKK, does not well in inflation and not well in deflation, but very well in golidocks and reflation. To make sure the ARKK short does not hurt you too much in a bear market rally, you have to calculate the Beta of your long portfolio and addjust the size of the ARKK Short.
Ah that's true. IWM belongs in the bottom 5 equity style factors in inflation and deflation. My RARK is 5% so it's manageable. So a 8% RWM position sounds reasonable. I'm a subscriber to 42 Macro too. I use Mr. Dale's work and your work to flesh out my portfolio. Thank you Andreas.