The market has been buoyed in Q4 by softening inflation data, which has been a direct result of the aggressive Central bank interest rate increases witnessed in 2022 and 2023. The markets are now considering if interest rate cuts could be on the horizon for 2024. The STRATxAI engine dynamically identifies which portfolio adjustments are required to capitalise on current market opportunities, whilst still focusing on smart long-term investing.
December 2023 Performance
The @CuttingEdge portfolio outperformed the benchmark, growing 5.6% compared to the S&P 500's 4.4% increase. The rally in the last few months proved to be an excellent opportunity for the style factors value and quality. The portfolio's top performers include Allegion PLC ($ALLE (Allegion)) with exceptional growth of 18.6%. While Armstrong World Industries Inc ($AWI (Armstrong World Industries Inc.)), Booking Holdings Inc (BKNG), & Affiliated Managers Group's ($AMG (Affiliated Managers Group)) each returned over 10% in the period.
Rebalance and Portfolio Composition for January 2024:
The STRATxAI engine has identified 3 new highly promising stocks to join the January 2024 portfolio and so the @CuttingEdge portfolio will be dynamically updated to react to evolving market fundamentals.The inverse volatility weighting gives higher weights to less volatile positions, which can help reduce the overall risk. The portfolio remains well diversified, with 11 different sectors represented.
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