Wealthbystrategy @Wealthbystrategy: "Dear Copiers and Followers, 📈 Year-to-Date..."

Sweden

Dear Copiers and Followers, 📈 Year-to-Date Performance: 23.3% (S&P 500: 12,0%) 🟩 August: -1,2% (S&P 500: -3,2%) To fully benefit from all portfolio transactions, please copy with a minimum of $200. _______________________________________________________________________ 💼 Portfolio Activity (July 29-August 9) As mentioned in a special update last week, we postponed our usual Monday weekly report due to the recent market volatility. Consequently, this weekly report will try to provide you with a short summary of the last two weeks. 💲 We injected a substantial amount of liquidity into our portfolio on August 1. This strategic move did position us advantageously relative to the sharp market declines. We gradually have been deploying this liquidity, purchasing assets at what we consider to be fundamentally attractive prices. While we have already invested a large portion of the cash, approximately 25% of the portfolio remains in liquid assets. Our goal is to allocate this liquidity to opportunities we deem most valuable as soon as market conditions permit. In our view, the markets have overreacted to recent macroeconomic data. We have, therefore, been deploying our liquidity to actively invest in equities that we believe have been unjustly punished relative to their fundamentals, as well as in ETFs such as $SPY , IWM and QQQ to swiftly gain market exposure. Our approach with these ETFs is to put capital to work immediately, with the intention of rotating into individual equities with higher potential returns, as we identify attractive fundamental and technical opportunities and deem the timing to be right. In addition, we have also increased our investments in several existing equity holdings over the past few weeks. Furthermore, we have added a few exciting new companies to the portfolio, including $IGIC (International General Insurance Holdings Ltd) , $AXON (Axon Enterprise Inc) , $IDCC (InterDigital Inc.), and $AGYS (Agilysys Inc) . 💹 Market Briefing (July 29 - August 2) The week before last was marked by a significant downturn in the financial markets. Wall Street's benchmark S&P 500 recorded its first three-week losing streak since mid-April, while the tech-heavy Nasdaq Composite experienced an even steeper decline, slipping into correction territory. Disappointing earnings reports from some of the major tech companies, known as the "Magnificent 7," combined with a sudden shift in the narrative around U.S. monetary policy, contributed to this negative performance. Both the S&P 500 and the Dow Jones fell by 2.1% over the week, reflecting widespread concerns about the economy. The Nasdaq Composite, driven by poor performance from major tech companies, dropped by 3.4%. Investor uncertainty was evident as the CBOE Volatility Index surged by 42.7% to 23.39. Economic data and Federal Reserve policy were also in focus. The Fed hinted that a rate cut could be on the table as soon as September. However, soft readings on manufacturing and construction, coupled with a weak nonfarm payrolls report, sparked fears that the Fed may have already over-tightened, potentially slowing the economy too much. This has led to calls for more aggressive policy easing. Global markets and commodities also faced challenges. As the week ended, investors were left anxiously awaiting upcoming economic data, which will be crucial in determining the Federal Reserve's next moves and the broader market trajectory. This Week's Market Briefing (August 12-16) 🔭 Overall Market Outlook The past week has been a rollercoaster for Wall Street, showcasing both sharp declines and significant rebounds, culminating in a largely flat performance across major indices. Despite the volatility, the market’s underlying resilience and strong labor data have tempered recession fears, while ongoing earnings reports continue to provide insights into corporate health. As we look ahead, attention will shift to key inflation reports that could influence the Federal Reserve's monetary policy decisions, with markets closely watching for any signs that might prompt interest rate adjustments. 📊 Past Week's Market Activity (August 5-9) Last week began with a sharp downturn, with the S&P 500 experiencing its worst single-day drop since September 2022, driven by global recession worries and a surprise interest rate hike from the Bank of Japan. However, the market quickly recovered, highlighted by a 2.3% surge on Thursday, the biggest daily gain of 2024, fueled by better-than-expected jobless claims data. Despite these fluctuations, the S&P 500 ended the week with a minimal 0.04% decline, while the Nasdaq Composite and Dow Jones also saw modest losses of 0.2% and 0.6%, respectively. 🔭 The week ahead This week, all eyes will be on the latest U.S. inflation data. These readings will be crucial in shaping expectations for the Federal Reserve's next moves, particularly with speculation around potential interest rate cuts growing. 🙂 Wishing you a prosperous trading week ahead!

5 Mentioned

SPY

SPDR S&P 500 ETF

IGIC

International General Insurance Holdings Ltd

AXON

Axon Enterprise Inc

IDCC

InterDigital Inc.

AGYS

Agilysys Inc