Hey guys,
Back with another update on my Roth IRA portfolio. Overall, my portfolio has still been tracking well with the S&P 500. Although my Moonshot Growth portfolio slice has fallen off a cliff lately, my REIT slice and a lot of the financial stocks in my Growth + High Yield slice have kept me afloat. Let’s see how I’m doing since I maxed out my IRA in January.
- S&P 500 from January 4th – March 3rd: +3.43% ((350.66 – 339.03) / 339.03) x 100
- My portfolio from January 4th – March 3rd: +4.47% ((47,616.22 – 6,000 – 203.21) – 39,641.18) / 39,641.18 x 100
As you can see, I am still beating the S&P 500 this hear, however I was beating by close to three percent a few weeks ago, and now I’m only up by only one percent. I am still on track for my goal, but over the last month I’m down, in large part due to the tech rotation into other things. Here’s my performance by slice over the last few months.
However, if you take a look at my gains by slice all-time, my Moonshot Growth slice is still my second best performing portion of my portfolio since November, despite the rout lately.
I continue to be bullish on financial stocks. They tend to do well in a rising interest rate environment, and the bond yields continue to march upward. I don’t think rising interest rates are necessarily a bad thing, they prevent the economy from overheating and signal a strong growth environment.
However, as interest rates go up, debt becomes more expensive, so companies that have a lot of debt or are taking out corporate bonds to fund investments in their company are paying back more per dollar borrowed, so the valuation of growth stocks tends to go down as rates rise. However, this could be a great time to swoop in on certain growth companies who can grow rapidly despite higher interest rates.
How is your portfolio doing? Let me know in the comments! Also, get $30 when you sign up for M1 finance and fund your account with any amount: https://m1.finance/s8BR4gAiUk2M
Happy investing!
Roth and Roll Finance 