Transcript
Hello, everybody, welcome to Monday. Unbelievable day today the S&P 500 was down about a half a percent. But the Dow was up and the NASDAQ was down, that’s actually quite unusual to see that much disparity, the QQQ piece, which is the top 100 stocks on the NASDAQ was actually down 2.8%. Today. Luckily, we have the inverse of that. And we were actually up 2.8%. Today on that piece, we were also up again on the S&P 500 inverse piece. So that worked out really well, energy made money today, not like it did last week, but still was positive, all the other value pieces in our portfolio were all positive, significantly higher than the S&P 500. A matter of fact, if you look at all of the stock positions that we have in both of our models, all but one of them were positive today, which is just incredible. So we’ve actually made some pretty good money in a down day. And then we have the bond market, which the broad bond market, if I look at the Vanguard Total Bond Market Index to represent the broad bond market, it was down about a half a percent today, every single bond piece that we have, and all of our models except for one was better than that today. And one of them was up because we have as a Friday and inverse position that goes the opposite direction goes up, when seven to 10 year treasuries go down. So that worked out fantastic also.
So we had a really good day in the models, the only drawback that we’ve been having right now is that our taxable accounts are still invested in some of these, you know, growth stocks. And it’s just incredible. I mean, last year, everybody was on one side of the ledger going down the growth highway. And now everybody’s jumped over to the opposite side, the value highway, and we’ve made the changes, it’s been difficult to figure out exactly where to go and what have you, it’s very hard to kind of find these waves and my little signal portfolios have really paid off here. And I did things incrementally, you know, went down from eight pieces of growth to five, to two, to zero, probably shouldn’t have gone from eight to zero. But you know, hindsight is is an excellent tool if you have it, but I don’t always have it. You know, in front of me, my crystal ball is sometimes a little foggy. But I do feel good about the changes that we’ve made. The taxable accounts are still a bit of a problem. I’ll give you an example.
So we have an artificial and robotics piece, symbol’s IRBO, was down a fair amount today. And you know, the average gain that the clients have right now, and that is about 55%. And so that’s a real problem. Because if we sell it, because it’s coming down, we’ll end up with this giant tax Matter of fact, I think the total tax of the practice to the clients would be about $700,000. So unfortunately, that’s the problem. Yeah, but if you sell something that has a big gain, especially if there’s a short term capital gain, you’re guaranteed to lose, you’re gonna lose to tax, and then wherever you go, has to make that much more money to make up that taxes, and you better be right on where you go. I still think artificial intelligence, robotics have a future in this country and in this world. And I think that it just basically got overpriced, and now it’s going to snap back down, and then it’ll probably settle in and start to go again. So I think we need to just hang in there. You know, eventually, if we really see things falling apart even farther, you know, we’ll deal with those as they come. But that’s, that’s part of what’s happening on the taxable side. So I apologize for that. But we still have big, big games, on everything. If you see a transaction coming through on a taxable account right now, almost every single time we’re doing it because we saw some right off ability.
So if I can capture some short term, you know, losses, that’s great, that allows me to maybe take some other gains at some point in time, and make a move towards this model. Because the models are really working the whole process of kind of finding those waves and that signal portfolio, we have gone from one area of the market completely over to a different area, and we’re making money in that area now. So really, really pleased with what’s going on here. And I think there’s going to be some great opportunities to make money in this other area in this value area. These companies are cheaper. So we’re not buying, you know, way up here and hoping it goes even higher. We’re buying way down here in terms of price earnings ratios, they have a long ways to go. And again, these are companies that have been struggling for the most part. And like Disney, for example, they’ve cut back on all kinds of expenses. And as they reopen and go through even a small amount of revenue, could have a pretty big hit to the bottom line and really get things going. So I do think there’s gonna be some great opportunities here. I’m very excited about this.
I spent the weekend looking everything I feel like we’re on the right path. And we’re really going down the right path and we’ll continue to refine that and as we see you know, movement in the waves, we’ll move if we need to, but really, really good right now. So looking forward to see what’s going to happen this week and I’ll talk to you tomorrow. Thank you.