Lena Birse
United Kingdom
3m
Dear Copiers, As you can see from the performance statistics, December has not been a strong month for us. The Santa Rally I often hope for—while not material to my long‑term objectives—has not yet materialised. That said, in the whirlwind world of the stock market, sentiment can shift quickly, and it is still technically possible for the month to finish in positive territory. The extended shutdown of the U.S. government forced approximately 1.4 million federal employees to go weeks without pay. Beyond the obvious hardship this caused, it also created a lack of clarity around the U.S. economic outlook, as investors have had limited data to guide their decisions. Although the Federal Reserve recently cut interest rates, this did not stabilized the market. Instead, we continued to see selling pressure, particularly in the AI space, where some investors believe a valuation bubble may be forming. As a result, capital has been rotating out of technology stocks perceived as overvalued and into other sectors unrelated to AI and technology. As I write this update, CPI data has come in lighter than expected, and equity futures are responding positively. In addition, Micron has reported strong earnings, providing a near‑term boost to technology stocks, as Micron is a key semiconductor company tied to the artificial intelligence trade. Looking ahead, I am optimistic about the coming year. The outlook includes the potential for additional Federal Reserve rate cuts, which equity markets typically welcome, alongside continued evidence that inflation is moderating—an important condition for sustainable economic growth. Furthermore, as major technology companies continue to build out their AI infrastructure through 2029, I believe this remains an attractive environment for investors with a long‑term horizon. For these reasons, I continue to see value in a portfolio like mine that is positioned for long‑term growth. Thanks Lena 18/12/2025
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