Disruptive Stocks Strategy @II-Disruptive: "Portfolio Review & Market Outlook Market..."

Smart Portfolio

Portfolio Review & Market Outlook Market Overview The S&P 500 index remains in a downward trend. From a technical perspective, the index is showing weakness, trading below its key moving averages (SMA200, SMA50, and SMA20). Recently, the 50-day moving average (SMA50) has also crossed below the 200-day average (SMA200), forming a Death Cross—a technical signal that may indicate the start of a prolonged bearish phase. Meanwhile, the U.S. dollar has continued to weaken, now down approximately 10% against the euro year-to-date, reflecting concerns over U.S. growth prospects and monetary policy divergence. Earnings & Valuation Analyst expectations have been revised downward. The bottom-up EPS estimate for the S&P 500 now stands at 268, down from 275 a little over a month ago. With the index trading near 5,275, this results in a forward P/E of 19.67, which is slightly below the 5-year average (19.9) but above the 10-year average (18.3). From a fundamental standpoint, a strong market rebound appears unlikely without resolution in the ongoing trade tensions and an improvement in economic forecasts. Sector & Strategy Insight Among U.S. sectors, Information Technology has been the weakest performer over the past month, with semiconductor stocks leading the decline—down 15.9% in just one month. Despite a challenging market backdrop, our II-Disruptive portfolio has outperformed the Nasdaq 100, though we are not satisfied with the absolute return. The portfolio has been rebalanced to better navigate the ongoing trade war environment, but technology stocks remain out of favor, contributing to negative performance. - II-Disruptive YTD: –10.96% - Nasdaq 100 $NSDQ100 (NASDAQ100 Index (Non Expiry)) YTD: –12.96% Key Holdings & Recent Performers Top holdings in the II-Disruptive portfolio include: $MSFT (Microsoft) $AAPL (Apple) $NOW (ServiceNow Inc) Among the largest positions, $MELI (MercadoLibre) and $NFLX (Netflix, Inc.) have recently shown strong relative performance.