Rayeiris Maduro Rondon @Rayeiris: "𝑾𝒉𝒂𝒕'𝒔 𝒉𝒂𝒑𝒑𝒆𝒏𝒊𝒏𝒈 𝒕𝒉𝒊𝒔 𝒚𝒆𝒂𝒓 𝒘𝒊𝒕𝒉..."

Spain

𝑾𝒉𝒂𝒕'𝒔 𝒉𝒂𝒑𝒑𝒆𝒏𝒊𝒏𝒈 𝒕𝒉𝒊𝒔 𝒚𝒆𝒂𝒓 𝒘𝒊𝒕𝒉 𝒗𝒐𝒍𝒂𝒕𝒊𝒍𝒊𝒕𝒚? July so far is returning +9.19%, recovering from the -8.01% of June, and even though I’m not a big follower of Beta, Alpha and other performance metrics, sometimes we need to study the past to be conscious of what we need from the future (because volatility is a market condition and we can try to prevent it, or calculate it, but avoiding it completely is nonsense). However, if we take into account the alpha to study if our portfolio is performing well enough to overperform the passive investing, we are still far from that number, even if we remain neutral for the rest of the year. This year, it has been the strongest in movements since inception, having months with +10% and months with -8% nonstop. This has positioned our Beta at 1.15 when in the past our beta had been 0.75 and 0.85. This means when the market moves, our portfolio moves more than the market, both in negative and positive ways. Then the Alpha tells us, we’re underperforming the index, we are clear in that because from January to date, the Sp500 had given a +13% and we’re -1,64% this year, with an Alpha of -14,64. Why is that? and should we be worried? the sp500 is trading at a 31PE, historical high valuations, with extremely optimistic growth expectations. Many of that faith put on the AI economic development keep growing without economic backup. Because I look to remain away from these expectations, with reasonable valuations and in other countries rather than just the US, our stocks might not be the winners everyone is following, but are those with steady growth and solid businesses, disregarding AI, or at least not buying it at any cost. When the excitement around AI slows down, the portfolio will remain steady and strong, and survive any adverse circumstances. I’m not an AI hater, I’m just an investor following reliable companies far from the trendy topics, I might be losing the momentum others are profiting from, but not losing money is more important than risking our hard-earned wealth. My take after this environment is to always keep the eyes on the long term, chasing those high and quick returns is betting in a market that has been too optimistic for so long. Staying away from trends might seem counterintuitive in the short term, but because we can’t predict WHEN (not if), when the burst of optimism will reach its peak and start normalising valuations, the smartest strategy is to stick to what has worked well in history and wait to be rewarded. Thank you to all the followers and copiers who held during the uncertain periods; the geopolitical environment has put so much fear into investors that we need to remember the basics: don't panic and make rational decisions. ⭐ My portfolio has returned +152% since inception, compared to +94% of the $SPX500 ⭐ Looking for a value portfolio to copy? You can copy my portfolio today, which has a Compounded Annual Growth Rate of +28% Data from Bullaware. $AUS200 $UK100 $MU (Micron Technology, Inc.) $WISE.L (Wise Ltd) $WSE (Wise Group Plc)

Not investment advice. The author may have financial interests in the mentioned instruments.