Stewart Fitzell @defense_investor: "---The Key Issue Driving Markets..."

Ireland

Edited

---The Key Issue Driving Markets Right Now & Portfolio Update--- Markets are pricing in rate cuts, optimism is rising, and 𝙢𝙮 𝙥𝙤𝙧𝙩𝙛𝙤𝙡𝙞𝙤 𝙝𝙖𝙨 𝙨𝙩𝙧𝙤𝙣𝙜𝙡𝙮 𝙤𝙪𝙩𝙥𝙚𝙧𝙛𝙤𝙧𝙢𝙚𝙙 — 𝙪𝙥 𝟮𝟴.𝟳𝟳% 𝙔𝙏𝘿 𝙫𝙨. 𝟭𝟭.𝟵𝟱% 𝙛𝙤𝙧 𝙩𝙝𝙚 𝙎&𝙋 𝟱𝟬𝟬. Still, risks remain, and I’m carefully watching areas where valuations may be stretched — particularly AI-heavy stocks, which are running hot, and growth names that may be overextended. 🔹️𝙆𝙚𝙮 𝘿𝙖𝙩𝙖 𝙋𝙤𝙞𝙣𝙩𝙨: ▪️U.S. CPI: Headline inflation rose 2.9% y/y in August, core at 3.1% y/y — still above target but easing. ▪️U.S. Jobs Revision: The Bureau of Labor Statistics cut prior estimates by 911k jobs through March 2025. ▪️U.S. Jobless Claims: Rose to 263k, the highest since 2021. ▪️🇪🇺 The European Central Bank held rates steady at 2%, keeping policy on hold as eurozone growth remains weak. 🔹️𝙒𝙝𝙖𝙩 𝙏𝙝𝙞𝙨 𝙈𝙚𝙖𝙣𝙨: ▪️A 25bps Fed rate cut next week is almost certain. ▪️Markets expect three cuts of 25bps by year-end. ▪️Equities will likely gain, though the impact may not be even across sectors. ▪️Fed Chair Jerome Powell’s press conference next week will be the 𝙠𝙚𝙮 𝙢𝙖𝙧𝙠𝙚𝙩 𝙙𝙧𝙞𝙫𝙚𝙧, 𝙨𝙝𝙖𝙥𝙞𝙣𝙜 𝙚𝙭𝙥𝙚𝙘𝙩𝙖𝙩𝙞𝙤𝙣𝙨 for the pace of rate cuts. The tone and direction of his remarks may provide clues on the Fed’s path forward — signals that could strongly influence market performance in the short to medium term. Optimism is running high, but I believe a measure of caution is warranted. ▪️𝙋𝙤𝙧𝙩𝙛𝙤𝙡𝙞𝙤 𝙋𝙤𝙨𝙞𝙩𝙞𝙤𝙣𝙞𝙣𝙜: I’ve added to Financials ( $C (Citigroup) , $AXP (American Express CO) ) as I assess that there will be potential upside following rate cuts. I removed Indra Sistemas given its downtrend. I’m keeping a solid defensive balance with cash, gold & silver to maintain flexibility and agility, along with core holdings in $RHM.DE (Rheinmetall AG) (geopolitical tailwinds), $RR.L (Rolls-Royce) (air travel, defense, nuclear), and $CRH.L (CRH plc) (infrastructure growth). The strategy is paying off - we have strongly outperformed the markets this year. Have a great weekend! Regards, Stewart 🔹️𝙋𝙤𝙧𝙩𝙛𝙤𝙡𝙞𝙤 𝙄𝙣𝙩𝙧𝙤𝙙𝙪𝙘𝙩𝙞𝙤𝙣 & 𝙁𝘼𝙌 etoro.tw/3BqjOb2 🔹️𝘾𝙤𝙥𝙮 𝙏𝙧𝙖𝙙𝙞𝙣𝙜: 𝙆𝙚𝙮 𝙄𝙣𝙛𝙤𝙧𝙢𝙖𝙩𝙞𝙤𝙣 etoro.tw/45vTQj5 ⚠️ Risk Warnings: Copy Trading does not amount to investment advice | Your capital is at risk | The value if your investments may go up or down. | Past performance is not indicative of future results.

5 Mentioned

AXP

RHM.DE

RR.L

CRH.L

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