BellamySwe @BellamySwe: "𝐌𝐚𝐫𝐤𝐞𝐭 𝐎𝐮𝐭𝐥𝐨𝐨𝐤 𝐚𝐧𝐝 𝐏𝐨𝐫𝐭𝐟𝐨𝐥𝐢𝐨 𝐑𝐨𝐭𝐚𝐭𝐢𝐨𝐧 Two..."

Vietnam

𝐌𝐚𝐫𝐤𝐞𝐭 𝐎𝐮𝐭𝐥𝐨𝐨𝐤 𝐚𝐧𝐝 𝐏𝐨𝐫𝐭𝐟𝐨𝐥𝐢𝐨 𝐑𝐨𝐭𝐚𝐭𝐢𝐨𝐧 Two weeks ago today, I made a post saying I didn’t think the current downturn would persist due to the absence of major market disruptions - etoro.tw/4cp5EUt . Until market sentiment had improved, however, I would not make any changes to my defensive allocations since my overarching core ETF strategy is to reduce volatility. This worked well as my portfolio’s downturn this past month was limited to -1.93%, compared to the NSDQ’s -4.54%. Now I, and many others, believe that the recent US economic data paints a brighter picture: ✅ Inflation has continued to ease ✅ Upcoming Fed rate cut ✅ Retail sales have grown ✅ Jobless claims are lower than expected ✅ Market fears seem to have cooled (𝘸𝘪𝘵𝘩 𝘵𝘩𝘦 𝘝𝘰𝘭𝘢𝘵𝘪𝘭𝘪𝘵𝘺 𝘐𝘯𝘥𝘦𝘹 𝘥𝘳𝘰𝘱𝘱𝘪𝘯𝘨 𝘣𝘢𝘤𝘬 𝘪𝘯𝘵𝘰 𝘢 ‘𝘯𝘰𝘳𝘮𝘢𝘭 𝘳𝘢𝘯𝘨𝘦’ 𝘢𝘧𝘵𝘦𝘳 𝘢 𝘳𝘦𝘤𝘰𝘳𝘥 𝘴𝘶𝘳𝘨𝘦 𝘰𝘯 𝘵𝘩𝘦 5𝘵𝘩 𝘰𝘧 𝘈𝘶𝘨𝘶𝘴𝘵) 𝐁𝐮𝐭 𝐰𝐡𝐚𝐭 𝐝𝐨𝐞𝐬 𝐭𝐡𝐢𝐬 𝐦𝐞𝐚𝐧 𝐟𝐨𝐫 𝐭𝐡𝐞 𝐦𝐚𝐫𝐤𝐞𝐭𝐬? Firstly, recession fears have subsided and led many economists to think that the US has managed (or is in the process of managing) to pull off something known as a “soft landing”. In theory, this should benefit interest rate-sensitive stocks the most, such as real estate, utilities, financial and consumer discretionaries. However, markets are surging yet again with investors piling into AI-related stock with the likes of $NVDA (NVIDIA Corporation) soaring +16% in a week. Regardless, the economic data and market sentiment seem to favour continued growth and I believe the bullish market is back (𝘦𝘷𝘦𝘯 𝘵𝘩𝘰𝘶𝘨𝘩 𝘤𝘢𝘶𝘵𝘪𝘰𝘯 𝘴𝘩𝘰𝘶𝘭𝘥 𝘯𝘰𝘵 𝘣𝘦𝘦𝘯 𝘵𝘩𝘳𝘰𝘸𝘯 𝘵𝘰 𝘵𝘩𝘦 𝘸𝘪𝘯𝘥). 𝐌𝐲 𝐏𝐨𝐫𝐭𝐟𝐨𝐥𝐢𝐨 𝐑𝐨𝐭𝐚𝐭𝐢𝐨𝐧 With confidence restored in the markets, I’m shifting away from a purely defensive core. Starting today and over the next few weeks, I’ll gradually close positions in utilities, healthcare, consumer staples and pharmaceuticals. This capital will subsequently be reallocated to slightly more aggressive equity ETFs. Today, for example, I’ve closed $BP.L (BP) and $VHT , while opening positions in $SMH and $XLY . 𝐅𝐨𝐫 𝐭𝐡𝐨𝐬𝐞 𝐧𝐞𝐰 𝐭𝐨 𝐦𝐞 I'm a financial planner based in Vietnam focused on maximising returns with strategic stock picks and minimising volatility through ETFs. The purpose of my posts is to make others better investors and money managers while keeping followers apprised of my portfolio actions! 🙌 Would love for you to join me on this ride.

5 Mentioned

NVDA

NVIDIA Corporation

BP.L

VHT

Vanguard Health Care ETF

SMH

VanEck Vectors Semiconductor ETF

XLY

Consumer Discret Select Sector SPDR