Market Update: January–February 2026
We closed January with a +3.85% performance, which is a very strong start to the year. But the more important move happened behind the scenes.
Over the past weeks, we deliberately increased our cash position to 40%. The reason is simple: 2026 is shaping up to be a volatile year.
One key factor is the appointment of a new Federal Reserve Chair, Kevin Warsh. Historically, a change at the top of the Fed often creates a “stress year” for markets, as investors need time to understand the new chair’s policy approach. Early statements already suggest a more restrictive stance, including a potential end to quantitative easing (QE). That’s not exactly bullish for risk assets that have benefited from abundant liquidity over the past years.
On top of that, history is not on the market’s side either. The second year of a presidential term has, on average, been one of the weaker years for equities, often accompanied by higher volatility and drawdowns. $NSDQ100$QQQ (Invesco QQQ)
Because of this macro backdrop, we decided to reduce exposure and prioritize capital preservation. Our focus now is patience. We are waiting for attractive entry points, especially in technology and growth-oriented companies.
The good news?
Our dry powder is ready. With a strong cash position, we are well positioned to take advantage of opportunities when the market offers them. $BTC
2026 will not be a straight line upward — but for disciplined investors, it can be a year where real money is made. Stay tuned.... Show More
Not investment advice. The author may have financial interests in the mentioned instruments.
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Sat May 30 2026 09:21:36 GMT+0000 (Coordinated Universal Time)
