Portfolio Performance - May 2024
In case you missed it:
The month of May witnessed an impressive performance by the US equity market, solidifying its position as the regional heavyweight. Europe also showed strength, while Asia and emerging markets experienced more subdued results. The information technology sector emerged as the champion, fueled by the exceptional performance of tech giants like Nvidia, Microsoft, and Apple. “Sell in May” has no negative impact on markets so far. Let's delve deeper into the market movements and explore the performance of different sectors.
US Equity Market Dominance
The US equity market outshone its global counterparts in May, surging by an impressive 4.8%. This breakout performance was driven by a combination of softer inflation figures and stellar corporate earnings. Notably, tech titan Nvidia experienced a stock surge of over 20%, contributing significantly to the market's success.
Europe's Strength and Anticipated Easing
Europe also displayed its muscle, climbing 2.5% in May. Investors are eagerly awaiting the European Central Bank's expected rate cut in the first week of June, which is anticipated to provide a tailwind for the region's equities. The easing of financial conditions is expected to further bolster Europe's performance.
Asia and Emerging Markets
Asia and emerging markets delivered more modest results, with returns of 1.5% and 0.3% respectively. The drag on these regions can be attributed to weaknesses in China, as negative economic data impacted the broader indices. However, the surge in Japanese equities helped mitigate the decline for Asia, although it wasn't sufficient to lift the emerging markets index due to Japan's exclusion from that benchmark.
Outperforming Sector
The technology sector emerged as the undisputed champion, roaring back with an 8.5% rally in May. This impressive performance was driven by the stellar results of industry giants such as Nvidia, Microsoft, and Apple. The market continues to reward companies at the forefront of transformative technologies like artificial intelligence.
Our Portfolio's Performance
Amid this dynamic market landscape, our portfolio experienced sizzling returns in May, surging by 7%. This brings our total returns since inception in 2020 to an impressive 72%. We are excited to announce that we have recently added position on one of the stocks in our portfolio.
Portfolio summary
Keep reading with a 7-day free trial
Subscribe to Wealth Insights to keep reading this post and get 7 days of free access to the full post archives.