Alfonso Fernandez Pajuelo @JAGOPER: "Hi, I am sending a..."

Peru

Hi, I am sending a portfolio update for June. This month delivered a clear signal of market rotation. The equal weighted S&P 500 (RSP) gained +1.9% while the cap weighted index (SPY) fell -3.1%, one of the widest monthly spreads in favor of the average stock over index heavyweights in recent years. The Mag7 has underperformed the S&P 500 YTD, and June confirms we are seeing genuine rotation into the broader market. That dispersion shows up clearly across the sectors I hold. Consumer Staples and Healthcare, two areas where I have meaningful exposure, are both trading rich relative to their own history. Staples sit at ~22x forward earnings, the 81st percentile of the past 30 years, while Healthcare has rerated sharply off its 2025 lows and now looks closer to fair value than to the deep discount it traded at a year ago. Technology, by contrast, still offers a mix of expensive and reasonable names depending on the company, which is exactly why being selective within the sector matters more than treating it as a single trade. Small caps have been a standout beneficiary of this broadening rally, with the Russell 2000 posting double-digit gains YTD, reinforcing that capital is rotating out of the most crowded, expensive trades and into names the market had previously ignored. Given this, my strategy has shifted toward reducing exposure in Consumer Staples and Healthcare and being more selective with what we keep in those sectors. I sold $CVS (CVS Health Corp) and trimmed our $UNH (UnitedHealth) position after both reached their target return, locking in gains from names that did exactly what they were supposed to do during the rebound. I am redeploying that capital into $META (Meta Platforms Inc), $AMZN (Amazon.com Inc), $MSFT (Microsoft) and $NVDA (NVIDIA Corporation) . Meta continues to show the strongest combination of growth and reasonable valuation in the group, with monetization trends still improving. Amazon trades around ~26x forward earnings while AWS just posted its fastest growth in fifteen quarters, near 28% year-over-year, suggesting the cloud reacceleration is becoming a trend rather than a one-quarter blip. Microsoft has compressed to a more attractive multiple after months of pressure tied to AI capex concerns, even as its underlying enterprise and cloud fundamentals remain intact. Nvidia remains the clearest direct beneficiary of AI infrastructure spend, and despite its size, earnings growth continues to outpace the rerating in its multiple. Overall, my strategy remains unchanged from prior months: sell strength where valuations have normalized or overshot, and accumulate high-quality compounders where the market is still mispricing durable earnings power. With Consumer Staples and Healthcare now less attractive after this year's rally, and AI infrastructure names still offering a reasonable growth-adjusted entry point, that is where the capital is going.

Not investment advice. The author may have financial interests in the mentioned instruments.