Big changes in the portfolio
It’s been one of the most exciting weeks of the year. Not only did the VIX, considered the fear index, break out, but we also saw a macro shift.
This caused significant shifts in the market, with the market’s favorites, such as Tesla, XLK, Google, and Nasdaq, breaking their bullish trend.
Let’s break down the macro shift before we head into the portfolio!
The Macro Dynamic I have been writing about is slowing growth while inflation accelerates. This is still my longer-term view. What did change, however, is that over the following months, we will see inflation come down a little bit before the leading data starts to flow through.
This softer inflation patch will allow the Federal Reserve to implement two rate cuts before inflation reaccelerates.
This is significant as it will cause inflation to go up even more, making the market’s expectation of having five rate cuts happen within the next year very unlikely.
The Portfolio
We made some big changes to the portfolio, like getting out of EWN, as semi-conductors are the biggest exposure and breaking down. We also got out of Tech, SPMO, and copper.
So what can you buy and what are we long?
We are currently matching the MSCI World Index but are confident to surpass the performance with the current macro shift!
Our current positioning:
· XLU
· IAK
· PINK
· XLP
· SILVER
· GOLD
· EWUS
· NIKKEI
· DAX
· INDA
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Thank you,
Philippe