Dear investors,
Hope you are all well. I’ll provide you with short an update on the market and our portfolio below.
MARKET
Friday's Personal Consumption Expenditures (PCE) index came in largely as expected. Headline inflation was up 0.3% m/m, as expected, and in line with last month's pace. On a y/y basis, it was up 2.7%, also as expected, and in line with last month's infaltion. The core rate (ex-food & energy) came in at 0.2%, in line with expectations, and just below last month's 0.3%. On a y/y basis, it came in at 2.8%, as expected, and in line with last month's 2.8%.
The as-expected showing came as a relief. The previous CPI and PPI reports showed inflation starting to head back down, and the PCE report kind of did (or at least showed it's not heading back up). The big fear was that inflation might start climbing again. And seeing that it's not, was reassuring for the market.
Just the other week, Federal Reserve Governor Christopher Waller said, "in the absence of a significant weakening in the labor market, I need to see several more months of good inflation data before I would be comfortable supporting an easing in the stance of monetary policy." Let’s see how the situation develops and what this will mean for the market $SPX500$DJ30 and $NSDQ100 .
RISK
On average throughout the last year, we maintained a relatively low risk score of 4, with a balanced portfolio. This due to relatively larger part of “safer” investments and a larger cash balance.
PORTFOLIO CHANGES
We have not made many changes to the portfolio, and we remain with a reasonable cash balance at this moment. We did extend our positions in $ROG.ZU (Roche Holding Ltd) and $CMPS (COMPASS Pathways plc) as these stocks remain undervalued. I will continue to research investment opportunities and monitor our current portfolio.
I will keep you up to date on any new updates within the portfolio. Wish you all a good day!
Kind regards,
Daan... Show More
