📊 Market Update and Strategic Outlook
Despite significant market volatility in March, we are poised to close the month in negative territory. However, our performance in March, and throughout the year ,has notably outperformed the $SPX500 (SPX500 Index (Non Expiry)) , $NDAQ (Nasdaq Inc.) and $RTY (Russell 2000 Index (Non Expiry)) thanks to our diversified focus on Europe and China, particularly the latter.
Key Drivers of Current Volatility:
1️⃣ Inflation: Global inflationary pressures are rising, even in developed economies historically adept at containment.
2️⃣ Monetary Policy:
- The Fed now expects to delay rate cuts until 2025.
- China has hinted at potential rate cuts in 2025.
- Europe plans to slow the pace of rate reductions.
3️⃣ Trade Tensions: The U.S. is adopting an aggressive "play hard" strategy to maintain hegemony in trade negotiations.
4️⃣ U.S. Debt: At ~$30 trillion, debt levels remain elevated, largely due to pandemic-era spending.
My Perspective:
“After turbulence, calm often follows.” I anticipate a potential easing of U.S. trade tensions and subsequent market rebound. While short-term fluctuations are unpredictable, our focus remains long-term.
Our Strategy:
✅ Portfolio diversification from 15 to 30 assets, prioritizing sectors critical to our thesis.
✅ Maintain disciplined risk management in volatile conditions.
✅ Cash deployed to take advantage o oportunities
Question for Reflection:
How do you navigate bear markets effectively?
Best regards,
Fernando Gutiérrez... Show More
Thank you, Fernando, for sharing this insightful market update! Your strategic approach to diversification and risk management truly stands out, especially in such volatile times. It's impressive to see how your focus on Europe and China has led to outperformance despite broader market challenges.
Your... Show More
Should I be making an adjustment to my stop loss and do you suggest I capitalise on the low markets? ... Show More
1 reply
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Tue May 20 2025 20:19:12 GMT+0000 (Coordinated Universal Time)
