Last year’s laggards move to the front as the Nasdaq100 and Russell 20000 enter 10% correction territory. I open the year with an ugly -3.9% However, the SPY about doubles that decline, and IWM, QQQ are nearly triple. Considering we are only a few weeks into the new year, that’s ugly.
Self grade is C.
Here are a few ETFs year-to-date 20222:
SLV silver 4.0%
EEM emerging mkt 0.3%
GLD gold 0.1%
TLT US20 yr -3.1%
SPY SP500 -7.8%
IWM Russell 2000 -11.4%
QQQ Nasdaq 100 -11.6%
Last year’s laggards have moved to the front, though US bonds only offered modest shelter during this storm.
Is this the big one? Ursa Major? The start of a secular bear market? We will only know in hindsight, but best have a portfolio that can weather a big storm if it comes. For my life situation, caution is the word of the day. I’m not about to take any big swings, because my history indicates that I tend to whiff a lot.
I dodged a bullet in NFLX. I sold Jan 400 puts and got out with a nice profit before the freefall after the earnings report. Obviously, if I knew, I would have bought puts and made bank. Timing is always difficult in real time, easy in hindsight.
Be careful out there. Happy Lunar New Year. It is going to be the Year of the Tiger. Let’s hope for a profitable year.
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