In an eventful week for The Numbers’ portfolio, ten equities were traded that captured the market’s volatility and trending sectors. The bullish stance on technology and financial sectors proved to be strategic, spearheading a commendable overall portfolio return of 2.59%, significantly outperforming the S&P 500’s decline by a robust 2.89%.
Leading this charge was the Vaneck Semiconductor ETF, where a long position yielded an impressive 11.27%. The semiconductor sector remains at the heart of rapid technological advancements, buoyed by growing demand for chips in everything from consumer electronics to automotive technology. This movement not only amplifies the fund’s impressive performance but also highlights the ongoing digital transformation’s critical role in economic growth.
Similarly, the decision to go long on the Nasdaq QQQ Invesco ETF produced a solid 6.15% return. Riding on the coattails of tech giants and innovators, the Nasdaq 100 often acts as a bellwether for technology-driven market momentum, benefitting from improved investor sentiment towards tech stocks. Additionally, going long on the S&P 500 Financials Sector SPDR delivered a stable 2.85% return, as rising interest rates create a favorable environment for financial institutions to capitalize on increased lending margins.
Our short position in the Gold SPDR ETF successfully returned 1.89%. As investors shifted away from this traditional safe haven amid bullish market anticipation, our strategic positioning benefited from gold’s declining allure. Aiming to capitalize on energy’s resilience, the S&P 500 Energy Sector SPDR ETF added another positive note, albeit modest, holding a 0.59% gain.
On the bond front, going long on the iShares iBoxx $ High Yield Corporate Bond ETF returned 0.89%, reflecting a tempered risk appetite as high-yield bonds offer attractive spreads in the current market interest rate cycle.
Conversely, certain bets didn’t pan out as intended. Shorting the Vaneck Gold Miners ETF resulted in a minor loss of 0.60%, as gold mining stocks sometimes move at odds with bullion prices. Similar downsides were experienced with shorts on the Investment Grade Corporate Bond Ishares Iboxx ETF, the China Largecap Ishares ETF, and the Emerging Markets Ishares MSCI ETF, resulting in losses of 0.88%, 1.35%, and 1.71% respectively. These losses indicate the complexity and unpredictability of international markets and bond sectors, often swayed by geopolitical tensions and global economic shifts.
Notably, this week’s portfolio achieved successful trades 75% of the time, reinforcing the robust nature of targeted strategic decisions in a fluctuating market. Overall, The Numbers’ ability to nimbly navigate the tumultuous market landscape further cements its reputation for data-driven market insights and precision trading.