Last week, we made big changes to the ROIC Big Board, which has helped shield our portfolio in the continued downturn in the markets this week.
Since the peak and as of close yesterday,
- The Nasdaq is down -8%
- ARK Invest’s flagship ARK Innovation ETF ($ARKK) is down -22%
- The ROIC Big Board is down -13.8% as a whole and the stocks + cash portion is down -9.9%
This makes sense, given our bias towards growth and innovation, but our discipline with valuation.
- I’m happy to see that our Stocks + Cash portion of the portfolio is close to performance in a downturn to the overall Nasdaq Composite, and the extra downturn is the pullback in Bitcoin, which looks to actually be reversing.
- We’ve been tracking to these interest rate risks for months, and the only changes I would make in retrospect would have been to be more aggressive in our shift to value. The value names we put into the Big Board are outperforming in this market.
I believe there is still further optimization we can do based on as much macro analysis as individual stock selection.
I will be doing our normal live stream today on my YouTube channel to discuss the weak market we’re in, and how we’re going to continue to adjust the ROIC Big Board to macro and market forces.