The past couple of weeks have felt like a buffet of unexpected challenges for global investors: the US election, rate cuts, and a fresh round of stimulus in China have all appeared like courses in a meal nobody quite ordered. Fortunately, my range of portfolios has been holding up well especially our multi-assets model.
Building long-term wealth is not an overnight affair, it requires a steady, disciplined approach to investing and a clear understanding of each position’s role in a portfolio. Our multi-assets model, in particular, is a concentrated portfolio with a carefully curated set of positions, a strategic approach for investors focused on achieving performance alpha over the broader market.
With the latest market action and following our proprietary signals, I have made some strategic moves in our lower risk portfolio. I have taken profits on US equities and pared back exposure to some global markets. Price swings are not for the faint of heart and the recent Wall Street rally gave us an ideal moment to lock in gains on certain positions.
Adding to the cash reserve, I also took profits on gold and I have been selectively trading in government bonds to stay nimble. Last week, gold took a step back with silver, platinum, and the rest of the precious metals crew following suit.
If you are looking for market doomsaying, you have come to the wrong place. I’m not overly concerned about Trump’s extreme rhetoric. Compared to his last election win, his return to office was less of a shock this time around. If there is one thing Trump consistently delivers, it is keeping the world on its toes. So rather than overreact, we will wait to see how his policies play out in practice.
With volatility likely ahead, I’m keeping cash ready to seize upcoming opportunities. Another way to find solid deals? Maintaining a steady approach can uncover hidden value even in unpredictable times.