Vistafolio is Wealth Morning’s Managed Account solution for Eligible and Wholesale Investors. Once a month, we update account holders on the strategy and performance. Please find our latest update as follows:
If fear and greed drives the markets, this May has been the poster child.
But more on the fear side…
Earlier in the month, we saw the S&P 500 slide almost 20% off its January high. Some say a 20% drawdown officially signals a bear market.
It’s not hard to see why the bear would turn up.
- Skyrocketing inflation and the heavy central bank medicine required to tame that.
- The ongoing and painful war in Ukraine.
- Stumbling house values as higher interest rates kick.
- Aggressive Covid lockdowns strangling the huge Chinese economy.
Yet inflation is a two-edged sword. Cash is not going to hold its value in the bank. It’s eroding by the day.
So we also see an impetus to buy the dip. The greed factor.
This is exactly what we do, attempting to snap up value as soon as we see it.
It’s not an indiscriminate strategy for us. We have a couple dozen companies we see great potential for in this environment. Robust assets. And strong income. So we target those.
Overall, for the month of May 2022, we are down 2.20% across the composite portfolio (total aggregate return across all portfolios following the strategy).
Better than many tech-wreck exposed managers, but still not what we like to see.
This brings our overall annualised return for the year tracking around 3.61%.
Please see our performance chart for more details.
We are expecting more of an upward bump as some of the value we’ve bought into is realised over the next few months.
It’s a great time to invest.
It’s not every day your favoured companies go on a snap sale.
Editor, Wealth Morning
Past performance is not an indicator for future performance. Your actual portfolio will differ from the composite portfolio mentioned. The information contained in this document does not constitute an offer to sell or a solicitation to buy an investment, nor should it be construed as investment advice. Vistafolio investment services are available to Eligible Investors and Wholesale Investors (not to Retail Investors) as defined in the Financial Markets Conduct Act (2013).