michael eraklis kashioulis @MikesTrades: "Dear Copier, As Q2 wrapped up..."

United Kingdom

Dear Copier, As Q2 wrapped up a couple of weeks ago, I wanted to take a moment to reflect on how the portfolio has performed so far this year and share a few key highlights as we head into Q3. For the first half of 2025, the portfolio is up +23.87%, with +20.77% delivered in Q2 alone. I’m really pleased with that result, and it reflects the strength of the long-term, diversified strategy I’ve been sticking to. With the $SPX500 hitting fresh record highs (and the $UK100 joining in today too), it’s clear that investor confidence remains strong despite a noisy backdrop. Looking back at Q2, there has been a noticeable shift in market sentiment. 𝙏𝙖𝙧𝙞𝙛𝙛𝙨 It kicked off with renewed tariff chatter out of the US, which initially spooked markets, but the swift u-turns helped fuel a strong rally across global indices. Compared to the caution and pessimism we saw in Q1, Q2 felt more optimistic, with investors clearly leaning into the upside again, which was reflected in the massive turnaround from negative to significant gains in the last 3 months. 𝙄𝙣𝙩𝙚𝙧𝙚𝙨𝙩 𝙍𝙖𝙩𝙚𝙨 In the UK, interest rates were held steady, a sensible move from the Bank of England given the number of moving parts in the economic outlook, not to mention the political unknowns ahead. Over in Europe, the ECB did make a move, trimming rates by 0.25% in a bid to give the region a boost. The Fed, meanwhile, kept its cards close to its chest, also holding rates and signalling a “wait and see” approach as they monitor the inflationary impact of tariffs and its potential impact on US growth. 𝙏𝙚𝙘𝙝 𝙍𝙖𝙡𝙡𝙞𝙚𝙨 Tech stocks came back swinging hard in Q2 after a sluggish start to the year. We saw multiple analyst upgrades across the space. One of our largest tech holdings, Spotify, got a nice boost with fresh “outperform” ratings and raised price targets from various analyists, which has been great to see as a core holding in the portfolio. 𝙌𝟯... As for Q3? I think we’re in for more unpredictability. Policy shifts, especially those made at the last minute, have been driving markets lately, and that trend could easily continue. With several tariff deadlines extended into August (let's see what happens when these deadlines arrive), and central banks staying flexible, we could see more swings ahead. I’ll be watching closely how the Fed positions itself at upcoming meetings, the internal split between members will likely shape sentiment for the rest of the summer. I'm feeling broadly positive about the UK and the EU region with more opportunity there I'll likely soon move into. Thanks for your trust, Michael

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

2 Mentioned

SPX500

SPX500 Index (Non Expiry)

UK100

UK100 Index (Non Expiry)

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