๐ ๐ช๐ก๐ฎ: ๐๐๐ก๐ ๐๐๐๐, ๐๐๐ข๐ ๐ฟ๐๐จ๐ฉ๐๐ฃ๐๐ฉ๐๐ค๐ฃ
July was the month the AI trade finally showed its volatility. Sharp semiconductor corrections early, massive single-day rebounds on Microsoft earnings, 30-year Treasury yields touching levels not seen since 2007. The S&P closed up just 0.44%. The headline number hides how uncomfortable the ride was.
What made it interesting wasn't the moves themselves. It was who said what.
Goldman Sachs' head of asset allocation research published a piece this month arguing that most investor portfolios have quietly drifted too far into tech and innovation stocks and aren't protected enough against inflation. Think of it this way: the more your portfolio looks like the S&P 500, the more concentrated it is in a handful of AI names. When those names correct, everything corrects together.
His prescription: short-duration bonds, real assets, regional diversification. Assets that don't move in lockstep with tech.
That's exactly what this portfolio is built around. Not a prediction, just a risk management choice that's becoming more relevant by the month.
In July I trimmed positions that stopped earning their place, cut the inverse Nasdaq hedge held since April, reduced some losing names. The portfolio is cleaner and more focused now.
Closed the month up 1%. September Fed meeting is the next real test.
๐๐ฐ๐ต ๐ช๐ฏ๐ท๐ฆ๐ด๐ต๐ฎ๐ฆ๐ฏ๐ต ๐ข๐ฅ๐ท๐ช๐ค๐ฆ. ๐๐ฉ๐ฆ ๐ข๐ถ๐ต๐ฉ๐ฐ๐ณ ๐ฎ๐ข๐บ ๐ฉ๐ข๐ท๐ฆ ๐ง๐ช๐ฏ๐ข๐ฏ๐ค๐ช๐ข๐ญ ๐ช๐ฏ๐ต๐ฆ๐ณ๐ฆ๐ด๐ต๐ด ๐ช๐ฏ ๐ต๐ฉ๐ฆ ๐ฎ๐ฆ๐ฏ๐ต๐ช๐ฐ๐ฏ๐ฆ๐ฅ ๐ช๐ฏ๐ด๐ต๐ณ๐ถ๐ฎ๐ฆ๐ฏ๐ต๐ด.
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Not investment advice. The author may have financial interests in the mentioned instruments.
I am still very bullish on the AI play - healthy correction in my view. On the asset concentration point: yes, the more pple hold tech the less likely is tech to outperform the market as it drifts being "the market".
As for other asset classes: yes makes sense from a risk management perspective... Show More
Spot on analysis about index concentration risk! ๐ฏ
That Goldman Sachs note hits the nail on the head โ most investors don't realize how overexposed they are to a single sector until a pullback happens.
While you're actively rebalancing and hedging against that macro volatility, I built my... Show More
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