II-Quality @II-Quality: "II-Quality portfolio review - quality..."

Smart Portfolio

II-Quality portfolio review - quality stocks hold their ground The beginning of 2025 has offered investors an unusually eventful and polarized market environment. Trump’s unexpected tariff decisions triggered a sudden correction in equities, accompanied by a sharp rise in interest rates and a weakening dollar. The VIX spiked to levels higher than during the COVID crisis. The markets’ reaction forced Trump to back down, freeze the tariffs, and later grant exemptions for certain tech companies. These moves, combined with a calming bond market and a solid earnings season, restored investor confidence. The $SPX500 (SPX500 Index (Non Expiry)) has since rebounded from its trade war lows and is approaching the key 200-day moving average. From a technical analysis perspective, the S&P 500 index remains in a downtrend until a confirmed breakout above the 200-day SMA. Markets are closely watching the Fed’s May decision amid the ongoing trade war environment. However, the Fed is unlikely to provide support just yet in the form of rate cuts. While recession fears have eased after Trump froze the tariffs, equity markets remain highly volatile in 2025 — offering selective buying opportunities. Trade deal between the U.S. and China could act as the next catalyst for further gains. Investors should remain alert, diversify thoughtfully, and monitor market signals and trade war decisions. Our @II-Quality portfolio has delivered a return of 2.0% year-to-date, while the S&P 500 index is down -3.1%. Quality stocks have proven to be a sound choice in a trade war-driven environment. Our largest holdings are $ORCL (Oracle Corporation) $WMT (Walmart Inc.) and $TJX (TJX Companies Inc)

5 Mentioned

SPX500

ORCL

Oracle Corporation

WMT

Walmart Inc.

TJX

TJX Companies Inc

II-Quality

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