๐๐ฎ๐ญ๐ญ๐ข๐ง๐ -๐๐๐ ๐ ๐๐๐ซ๐๐จ๐ซ๐ฆ๐๐ง๐๐ ๐๐ฉ๐๐๐ญ๐
The stock market has maintained its positive momentum from 2023 into 2024. Capitalising on the broader market tailwinds, @Cutting-Edge has returned almost 3% year-to-date and over 8% since its launch in December 2023.
๐๐ซ๐ข๐ฏ๐ข๐ง๐ ๐ ๐จ๐ซ๐๐๐ฌ: ๐๐ง๐๐ฅ๐ฒ๐ฌ๐ข๐ง๐ ๐๐ญ๐ฒ๐ฅ๐ ๐ ๐๐๐ญ๐จ๐ซ๐ฌ
Digging deeper into the data, itโs evident that the quality factor was the main driver of returns this month. As we can see in the attached chart, the quality factor returned 5% year to date while low-volatility and value returned 2% and 0% respectively.
๐๐๐จ๐ง๐จ๐ฆ๐ข๐ ๐๐ซ๐จ๐ฐ๐ญ๐ก ๐๐ง๐ ๐ญ๐ก๐ ๐๐จ๐ซ๐ญ๐๐จ๐ฅ๐ข๐จ
The data from Q4 2023 indicates strong economic growth, giving policymakers a chance to gradually bring inflation back to the Federal Reserve's target of 2% in a sustainable manner.
The market is expecting the first rate cut in May 2024. What does this mean for the CuttingEdge portfolio? It bodes well. Historically the quality factor has outperformed in the periods following rate hike halts.
๐๐๐ซ๐ค๐๐ญ ๐๐ซ๐๐๐๐ญ๐ก: ๐ ๐๐๐ซ๐ซ๐จ๐ฐ ๐๐๐ฅ๐ฅ๐ฒ
This month's market rally has lacked breadth, with less than 40% of U.S. stocks showing gains since the beginning of the year. This limited scope of market gains is an important aspect we'll continue to track. Regardless, 12 out of 15 positions in the Cutting-Edge portfolio experienced growth this month.... Show More
