Weekly Performance Report - Week 3: January 2023
It's been a rollercoaster of a week in the markets, much like the classic game of Snakes and Ladders. Last week, we seemed to be on the ladder, steadily climbing higher and avoiding the many small snakes that riddle our way. But just when we thought we had found our footing, the big snake at 99 came out of nowhere and sent us plummeting back down.
What started with a tough week has almost turned into a tough month, as the markets seem to be stuck in a range-bound pattern. At times like these, it can feel like there's little to be done. But it's important to remember that nothing lasts forever, and fortunately that's as true for a bad market as it is for a good one.
Despite the directionless markets, one model has been making huge gains: Quick Short. It made an impressive 5.09% today alone! As we mentioned last week diversity is key in times like these. It's important to not put all the eggs in one basket, have a portfolio that includes a variety of investments, so that even when the markets are struggling, you can still see some returns.
It's also important to have a well-thought-out risk management strategy in place and not to be over-leveraged. This can help to minimise potential losses while positioning you to take advantage of any opportunities they may arise.
Many believe that the current stalemate in the markets is due to the upcoming budget. While that may be a contributing factor, the stock market is an enigma of its own. It's impossible to predict with complete certainty what will happen next. The market is influenced by a wide range of factors, including economic indicators, company earnings, and political events, as well as unknown and unexpected factors such as natural disasters, pandemics, and geopolitical tensions.
Remember that the stock market is never a sure shot; it's a highly complex and dynamic system that can be influenced by a wide range of factors. Even the most experienced investors and analysts exercise restraint when commenting on the future of the market. It's crucial to stay informed, and to keep an eye on the markets. But always be prepared for surprises, you never know what may happen next.
As we head into a new week, it's important to keep a positive outlook and to remember that the markets have a way of surprising us. Even if it’s not possible to predict the markets but with a well-diversified portfolio and a well-thought-out risk management strategy, one can minimise the impact of the unknown and the unexpected. In essence, It’s easier carrying an umbrella than predicting the weather. Wishing you a great week ahead and see you Monday!