Lin Liu
Lin Liu
Austria
1y
May Update May was an exceptional month. After a rocky start to the year, the markets have made a strong comeback. This is a good reminder of how important it is to stay calm during periods of volatility. Volatility can really mess with your head. When fear and uncertainty dominate the headlines, it's easy to lose sight of the long-term picture. Unfortunately, many investors still fall into the same psychological traps. When the market is up, they feel euphoric and rush to buy in. When the market drops, they get emotional, panic, and sell at the worst possible time. After more than a decade in the markets, I’ve seen this way too many times. This correction proved it once again. Volatility can be your friend if you learn how to navigate it. The key is to stay disciplined and maintain a long-term perspective. Most people would probably be better investors if they just stopped watching the news. So much of it is just noise. Every day, there’s a new crisis or some dramatic headline that makes it feel like the world’s ending. But there will always be bad news. All it does is get people thinking short-term, making emotional decisions, and doing the opposite of what they should do. But if investors would actually focus on the important stuff — such as fundamentals, market trends, and how to manage risk — they’d be way better off. So, where do we go from here? I’d like to highlight a section from last month's update: 𝘉𝘶𝘵 𝘩𝘦𝘳𝘦’𝘴 𝘵𝘩𝘦 𝘱𝘰𝘴𝘪𝘵𝘪𝘷𝘦 𝘯𝘦𝘸𝘴: 𝘪𝘵 𝘥𝘰𝘦𝘴 𝘴𝘦𝘦𝘮 𝘵𝘩𝘢𝘵 𝘵𝘩𝘦 𝘸𝘰𝘳𝘴𝘵 𝘮𝘪𝘨𝘩𝘵 𝘣𝘦 𝘰𝘷𝘦𝘳. 𝘌𝘷𝘦𝘳𝘺𝘰𝘯𝘦 𝘬𝘯𝘰𝘸𝘴 𝘵𝘩𝘦 𝘵𝘢𝘳𝘪𝘧𝘧𝘴, 𝘪𝘯 𝘵𝘩𝘦𝘪𝘳 𝘤𝘶𝘳𝘳𝘦𝘯𝘵 𝘧𝘰𝘳𝘮, 𝘢𝘳𝘦 𝘯𝘰𝘵 𝘴𝘶𝘴𝘵𝘢𝘪𝘯𝘢𝘣𝘭𝘦. 𝘈𝘯𝘥 𝘛𝘳𝘶𝘮𝘱 𝘩𝘢𝘴 𝘴𝘵𝘢𝘳𝘵𝘦𝘥 𝘵𝘰 𝘣𝘢𝘤𝘬 𝘰𝘧𝘧. 𝘏𝘦𝘯𝘤𝘦, 𝘢𝘴 𝘮𝘦𝘯𝘵𝘪𝘰𝘯𝘦𝘥, 𝘵𝘩𝘦 𝘤𝘩𝘢𝘯𝘤𝘦𝘴 𝘢𝘳𝘦 𝘩𝘪𝘨𝘩 𝘵𝘩𝘢𝘵 𝘸𝘦’𝘷𝘦 𝘴𝘦𝘦𝘯 𝘵𝘩𝘦 𝘭𝘰𝘸 𝘰𝘧 𝘵𝘩𝘪𝘴 𝘤𝘰𝘳𝘳𝘦𝘤𝘵𝘪𝘰𝘯. 𝘖𝘧 𝘤𝘰𝘶𝘳𝘴𝘦, 𝘵𝘩𝘪𝘴 𝘰𝘯𝘭𝘺 𝘩𝘰𝘭𝘥𝘴 𝘵𝘳𝘶𝘦 𝘪𝘧 𝘵𝘩𝘦𝘳𝘦’𝘴 𝘯𝘰 𝘧𝘶𝘳𝘵𝘩𝘦𝘳 𝘦𝘴𝘤𝘢𝘭𝘢𝘵𝘪𝘰𝘯, 𝘢𝘯𝘥 𝘸𝘦’𝘭𝘭 𝘢𝘥𝘫𝘶𝘴𝘵 𝘪𝘧 𝘵𝘩𝘢𝘵 𝘩𝘢𝘱𝘱𝘦𝘯𝘴. 𝘉𝘶𝘵 𝘳𝘪𝘨𝘩𝘵 𝘯𝘰𝘸, 𝘵𝘩𝘪𝘴 𝘪𝘴 𝘯𝘰𝘵 𝘰𝘶𝘳 𝘣𝘢𝘴𝘦 𝘤𝘢𝘴𝘦. 𝘎𝘰𝘪𝘯𝘨 𝘧𝘰𝘳𝘸𝘢𝘳𝘥, 𝘸𝘦’𝘭𝘭 𝘣𝘦 𝘥𝘦𝘱𝘭𝘰𝘺𝘪𝘯𝘨 𝘮𝘰𝘳𝘦 𝘢𝘯𝘥 𝘮𝘰𝘳𝘦 𝘰𝘧 𝘰𝘶𝘳 𝘤𝘢𝘴𝘩 𝘪𝘯𝘵𝘰 𝘲𝘶𝘢𝘭𝘪𝘵𝘺 𝘴𝘵𝘰𝘤𝘬𝘴, 𝘧𝘰𝘤𝘶𝘴𝘪𝘯𝘨 𝘦𝘴𝘱𝘦𝘤𝘪𝘢𝘭𝘭𝘺 𝘰𝘯 𝘴𝘦𝘤𝘵𝘰𝘳𝘴 𝘭𝘦𝘴𝘴 𝘢𝘧𝘧𝘦𝘤𝘵𝘦𝘥 𝘣𝘺 𝘵𝘢𝘳𝘪𝘧𝘧𝘴, 𝘴𝘶𝘤𝘩 𝘢𝘴 𝘍𝘪𝘯𝘢𝘯𝘤𝘪𝘢𝘭𝘴, 𝘊𝘺𝘣𝘦𝘳𝘴𝘦𝘤𝘶𝘳𝘪𝘵𝘺, 𝘚𝘰𝘧𝘵𝘸𝘢𝘳𝘦, 𝘋𝘦𝘧𝘦𝘯𝘴𝘦, 𝘢𝘯𝘥 𝘏𝘦𝘢𝘭𝘵𝘩𝘛𝘦𝘤𝘩. That’s exactly what we’ve done. Now that the markets have had a strong run, it’s important not to become too excited again. The market will likely need some consolidation or pullback soon, which would create great buying opportunities. It’s all about looking for favorable risk-reward ratios. I still think we’re just at the start of a huge tech revolution. And over the past few years, we’ve done really well by spotting the AI and cloud wave early. Sectors like chips, networking, data centers, and foundation models have been the main beneficiaries (which are far from done). But what’s coming next is one of the biggest opportunities I’ve seen in my career. AI agents, robotics, self-driving cars, and gene editing. Tons of new industries are emerging because of the platform shift brought about by AI. Many sectors are just starting to take off, and I believe each could grow into a multi-trillion-dollar industry. And this is where the next set of industry leaders will emerge.
Not investment advice. The author may have financial interests in the mentioned instruments.
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