Harpinder Kang @HarpinderKang: "𝙀𝙣𝙙 𝙤𝙛 𝙈𝙤𝙣𝙩𝙝 𝙋𝙤𝙧𝙩𝙛𝙤𝙡𝙞𝙤 𝙐𝙥𝙙𝙖𝙩𝙚:..."

United Kingdom

𝙀𝙣𝙙 𝙤𝙛 𝙈𝙤𝙣𝙩𝙝 𝙋𝙤𝙧𝙩𝙛𝙤𝙡𝙞𝙤 𝙐𝙥𝙙𝙖𝙩𝙚: May Portfolio Performance: +2.77% for the month as the market keeps grinding higher. 𝙈𝙖𝙧𝙠𝙚𝙩 𝙊𝙫𝙚𝙧𝙫𝙞𝙚𝙬 While geopolitical tensions remain elevated, investors have largely moved from reacting to headlines toward focusing on earnings, inflation data, and the broader economic outlook. The biggest story continues to be AI. Semiconductor and infrastructure-related names extended their leadership as investors remain confident that AI spending will continue to grow throughout 2026. Meanwhile, many software and SaaS companies that had been heavily sold off earlier in the year are still attempting to establish a bottom. Inflation data during the month was also encouraging. Softer readings helped reinforce expectations that the Federal Reserve could begin easing monetary policy later this year, contributing to lower bond yields and supporting equity valuations. The S&P 500 responded by recovering much of the weakness experienced earlier in the quarter. 𝙎𝙚𝙘𝙩𝙤𝙧 𝙍𝙤𝙩𝙖𝙩𝙞𝙤𝙣 One theme I've been closely monitoring is the continued divergence between AI infrastructure beneficiaries and the companies expected to monetize AI applications. Capital continues flowing into semiconductor manufacturers, data center operators, and cybersecurity providers, while many software names remain under pressure despite improving fundamentals. I believe this gap will eventually narrow, but for now investors continue to reward companies directly benefiting from AI-related capital expenditure. 𝙋𝙤𝙧𝙩𝙛𝙤𝙡𝙞𝙤 𝙈𝙤𝙫𝙚𝙨 My decision to treat the March SaaS selloff as a buying opportunity has begun to pay off. $AMZN (Amazon.com Inc) was the standout performer in the portfolio following a strong earnings report that highlighted continued strength in both cloud computing and consumer spending trends. $MSFT (Microsoft) also delivered solid results. However, the stock is still consolidating after its earlier decline. I continue to view Microsoft as one of the highest-quality businesses in the market and would look to increase my position should it reach my preferred entry levels. I also continued adding to my position in the First Trust NASDAQ Cybersecurity ETF (CIBR). Cybersecurity remains one of the clearest long-term secular growth themes, and recent geopolitical developments only reinforce the importance of digital infrastructure protection for governments and corporations alike. 𝙒𝙝𝙖𝙩 𝙄'𝙢 𝙒𝙖𝙩𝙘𝙝𝙞𝙣𝙜 Looking ahead, the next major catalyst will be earnings from several key semiconductor companies. Their outlooks should provide valuable insight into whether current AI spending trends remain sustainable through the second half of the year. I'm also monitoring oil prices and ongoing disruptions to global shipping routes. While these issues have moved into the background for now, any escalation could quickly impact inflation expectations and market sentiment. 𝙁𝙞𝙣𝙖𝙡 𝙏𝙝𝙤𝙪𝙜𝙝𝙩𝙨 Despite the volatility experienced earlier this year, my overall outlook remains constructive. The $SPX500 has demonstrated impressive resilience, and strong earnings from large-cap technology companies continue to provide support for the broader market. Technically, market is nearing big resistance zone but overall I remain bullish. While headline-driven pullbacks remain possible, I believe they are more likely to create opportunities than signal the beginning of a sustained downturn. For now, I'm staying invested while maintaining some cash reserves should volatility present attractive opportunities. Thanks for reading, and best of luck in the month ahead.

Not investment advice. The author may have financial interests in the mentioned instruments.

3 Mentioned

AMZN

Amazon.com Inc

MSFT

Microsoft

SPX500

SPX500 Index (Non Expiry)

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