Richard Widlake
United Kingdom
2m
Edited
🟢Investor Update December 2025 November was a difficult month with a drawdown of 7%. Thankfully this is only the third red month we have had this year, and although it is frustrating, it is perfectly normal. The drawdown was due, in my view, to profit taking, unease about the government shutdown which caused further uncertainty due to limited data, doubts about a December Federal Reserve cut and a wave of old fashioned panic selling. I was surprised that the government reopening was not received as bullish, and I believe most of the market felt the same way. In these situations panic selling is the last thing I will do. The plan remains very simple. Allow my pre-set stop losses to protect profits from any unusually sharp drawdowns and look for bargains. I wanted to increase my exposure to AI stocks, but I was aware that any prolonged market unease would probably hit them the hardest. Instead I took the opportunity to re enter positions in rare earth miners. They had already been hit hard before November and, in the case of my selections in this sector, were now attracting government interest as part of an effort to reduce reliance on Chinese rare earth metals. To me this is very bullish. I also added more funds to several key ETFs covering defence, global infrastructure and utilities, all overlooked beneficiaries of the growth in AI. There has been a lot of noise throughout November from doom preachers and hyper bears calling for a total collapse or an AI bubble bursting. I do not agree with any of that. AI is developing unnervingly rapidly, but this is not the same as the dot com era. Companies are already using it to cut costs across the board. I am more confident than ever that it will be the biggest transformation across all industries, and I will not be spooked out of it. There are, however, some bearish catalysts ahead. Japan will decide on an interest rate increase on the 19th. Some United States banks expect them to raise rates. This will almost certainly trigger some selling as traders and institutions around the world adjust to the higher cost of liquidity from Japanese loans. On the bullish side there is likely to be serious discussion about the United States moving from quantitative tightening to easing. Money printing, although negative for inflation, is supportive for asset prices. Combined with what is now a more likely Federal Reserve rate cut, the market could finish December in green territory. The plan remains the same: watch carefully and act only when necessary. This is primarily a long term portfolio, so worry and panic selling are not on the agenda. I hope November was not too stressful for anyone, but if it helps ease any nerves, red months happen. They are built in and are a very healthy part of market behaviour. Experienced investors do not worry about them. We simply look at the data to understand why the markets turned, adjust risk and then look for bargains. Thanks for sticking around. Copy trading is not investment advice | Capital at risk | Past performance does not guarantee future results
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