MarianoPardo @MarianoPardo: "𝗣𝗼𝗿𝘁𝗳𝗼𝗹𝗶𝗼 𝗨𝗽𝗱𝗮𝘁𝗲: 𝗡𝗮𝘃𝗶𝗴𝗮𝘁𝗶𝗻𝗴 𝗮 𝗗𝗼𝘄𝗻..."

Malta

𝗣𝗼𝗿𝘁𝗳𝗼𝗹𝗶𝗼 𝗨𝗽𝗱𝗮𝘁𝗲: 𝗡𝗮𝘃𝗶𝗴𝗮𝘁𝗶𝗻𝗴 𝗮 𝗗𝗼𝘄𝗻 𝗠𝗮𝗿𝗸𝗲𝘁 𝗮𝗻𝗱 𝗟𝗼𝗼𝗸𝗶𝗻𝗴 𝗔𝗵𝗲𝗮𝗱 Hi everyone, I understand that this past week has been tough for the markets, so I want to take a moment to share how I manage my portfolio during downturns and outline my investment strategy for the short and medium term. 𝗙𝗲𝗯𝗿𝘂𝗮𝗿𝘆 𝗣𝗲𝗿𝗳𝗼𝗿𝗺𝗮𝗻𝗰𝗲 𝗢𝘃𝗲𝗿𝘃𝗶𝗲𝘄 Before diving into the strategy, I’d like to share my factsheet for February: bullaware.com/factsheet/MarianoPardo Year to date, my portfolio remains flat, which, in relative terms, is a solid result considering that both the $SPX500 and $NSDQ100 are in the red. Some of my largest holdings, $GOOG (Alphabet) (-11.6%), $MSFT (Microsoft) (-7.95%), and $AMZN (Amazon.com Inc) (-6.7%), had a rough start to the year, but despite these challenges, my portfolio managed to prevent the worst from these results. 𝗠𝗮𝗻𝗮𝗴𝗶𝗻𝗴 𝗜𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁𝘀 𝗶𝗻 𝗮 𝗕𝗲𝗮𝗿 𝗠𝗮𝗿𝗸𝗲𝘁 Having been a Popular Investor for 10 years, I’ve witnessed multiple bear markets. One recurring pattern is the surge in negativity. Media narratives become overwhelmingly bearish, fueling fear and uncertainty. However, history has shown that these downturns always come to an end. It’s important to remember that the S&P 500 hit an all-time high just 15 days ago. Rather than reacting impulsively to short-term volatility, my approach remains consistent: avoid rushing into decisions, carefully rebalance my portfolio in alignment with my medium and long-term investment theses, and patiently wait for the market to recover. The goal isn’t to evade downturns but to position the portfolio advantageously for when the market bounces back. Trying to time the market is rarely a successful long-term strategy, because missing just a few key recovery days can significantly impact returns. 𝗠𝗲𝗱𝗶𝘂𝗺 & 𝗟𝗼𝗻𝗴-𝗧𝗲𝗿𝗺 𝗧𝗵𝗲𝘀𝗶𝘀: 𝗧𝗵𝗲 𝗘𝘅𝗽𝗹𝗼𝘀𝗶𝘃𝗲 𝗚𝗿𝗼𝘄𝘁𝗵 𝗼𝗳 𝗖𝗹𝗼𝘂𝗱 𝗖𝗼𝗺𝗽𝘂𝘁𝗶𝗻𝗴 I plan to write a longer post about this thesis, but I want to share a summary here. While AI is undoubtedly transforming every sector, I believe that the obvious beneficiaries, especially chip manufacturers, have already seen their valuations reflect this boom. However, the broader ripple effects of AI are creating massive opportunities beyond semiconductors. One area I see as undervalued is Cloud Computing. As industries integrate AI, robotics, smart machinery, and automated agents into their operations, the demand for cloud computing will significantly surge. AI applications are computationally demanding, not just in terms of AI model processing but also in the infrastructure they require: distributed computing, databases, caching, and high-speed networking. I see these primary beneficiaries of this shift: Cloud service providers: AWS, Google Cloud, and Microsoft Azure are poised for substantial growth as AI adoption increases. Databases and storage solutions: MongoDB and other scalable data management platforms will see increasing demand. Cloud infrastructure providers: Companies like Cloudflare, which is evolving into a major cloud computing player, will also benefit from this trend. 𝗪𝗵𝘆 𝗖𝗹𝗼𝘂𝗱 𝗖𝗼𝗺𝗽𝘂𝘁𝗶𝗻𝗴 𝗶𝘀 𝘁𝗵𝗲 𝗡𝗲𝘅𝘁 𝗕𝗶𝗴 𝗢𝗽𝗽𝗼𝗿𝘁𝘂𝗻𝗶𝘁𝘆 AI applications are not just about GPUs, they demand vast computational resources, efficient data storage, and robust networking solutions. As AI becomes a core component of business operations, the reliance on cloud infrastructure will only accelerate. Many investors are hyper-focused on AI hardware, particularly GPUs, but I believe they are overlooking the backbone that supports AI, the cloud itself. Cloud computing is set to experience an explosion in demand, and I expect valuations to reflect this shift in the coming years. 𝗙𝗶𝗻𝗮𝗹 𝗧𝗵𝗼𝘂𝗴𝗵𝘁𝘀 Market downturns are never easy, but they are a natural part of the investing cycle. Instead of making emotional decisions, I stay committed to my strategy, rebalancing thoughtfully and focusing on long-term opportunities. The AI revolution is just beginning, and while the spotlight is currently on semiconductor companies, there is also a big opportunity on traditional Cloud Computing. Thanks for reading! Disclaimer: This article is not financial advice. Please do your own research before making any investment decisions.

5 Mentioned

SPX500

NSDQ100

GOOG

Alphabet

MSFT

Microsoft

AMZN

Amazon.com Inc

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