Equities Roll and Continue Higher

1970s Inflation Comparison to now...not so much!

We are going to take a look at creating an active educational portfolio for the equities markets based off of the MegaCap Tracker that we have been displaying. We hope to bring this to you our subscribers in the coming weeks. We suspect the change to the FRB Skip regime will bring some decent opportunity to pick up some value or shed some over zealous longs in the heavy concentrated winners thus far of 2023.

We are tracking the MegaCaps alongside continued upside call hedging, which today, vaporized the upside move in the top 8 MegaCaps we track. However, we aren’t hedged for the day, but rather the week and actually you can see that despite hedging some downside risk over the last month, the hedges haven’t effected the overall return structure of our Tracker the actual unhedged Tracker is +17.8% while the hedge has only reduced the return by 0.5%, so overall it is doing its job:

One other thing to point out is that the top 8 MegaCaps are up $1.5 Trillion in a little over a month!