Momentum-Juul @Momentum-Juul: "𝗝𝗮𝗻𝘂𝗮𝗿𝘆 – 𝗧𝗵𝗲 𝗽𝗼𝗿𝘁𝗳𝗼𝗹𝗶𝗼 𝗴𝗼𝘁..."

Norway

𝗝𝗮𝗻𝘂𝗮𝗿𝘆 – 𝗧𝗵𝗲 𝗽𝗼𝗿𝘁𝗳𝗼𝗹𝗶𝗼 𝗴𝗼𝘁 𝗮 𝗴𝗿𝗲𝗮𝘁 𝘀𝘁𝗮𝗿𝘁 𝘁𝗼 𝘁𝗵𝗲 𝗻𝗲𝘄 𝘆𝗲𝗮𝗿 Thanks to all new copiers and followers. January has brought me over a 300% increase in the number of copiers on the Etoro platform, to around 800 copiers and AUC $824K. The portfolio had a strong start to the new year, delivering a 5.56% return—twice that of the S&P. I bought $LRN (Stride Inc.) in March 2023. The momentum for the American online educational company can't be stopped, and Stride was the winner in the portfolio this month with a return of 30%. $COLL (Collegium Pharmaceutical Inc) $NTES (NetEase Inc.-ADR) $SKX (Skechers USA Inc) and $SANM (Sanmina Corp) delivered all over 10 % return. The focus this month was on technology stocks, particularly DeepSeek, which has challenged more well-known companies by developing a cost-effective AI model. This led to a global decline in tech stocks, with the market value of $NVDA (NVIDIA Corporation) and Broadcom dropping by $800 million in the wake of the news about DeepSeek’s astonishingly low costs. Personally, I don’t believe this represents a long-term threat to technology stocks, but one should not overlook the high valuations of many tech companies. For instance, Nvidia is currently trading at 47 times its earnings. There is little doubt that technology companies are priced for future success, and when news tells us that this could potentially threaten their expected earnings, it is natural for market values to decline. The technology sector makes up a significant portion of the S&P index, particularly with the “Magnificent 7” companies. This has contributed to the high valuation of the U.S. stock market, creating a vulnerability if future earnings expectations for these companies are challenged. If the U.S. economy slows down and major tech firms are forced to scale back investments, we could see a significant decline for the sector. After the dot-com bubble burst, the Nasdaq fell 77% from March 7, 2000, to October 9, 2002—a decline that lasted two and a half years. This represents a worst-case scenario, driven both by companies failing to deliver expected earnings and valuations plummeting from extreme highs to much lower levels. While this may not be the most likely scenario, it cannot be ruled out that a similar downturn could happen again in the future. This highlights the importance of having a diversified portfolio with quality companies beyond the technology sector. I believe this is the best way to prevent significant drops and much more important than for example using stop-loss systems on individual stocks. It seems that 2025 could be an exciting year. Looking forward to the months ahead. Hope you have a great February!