Dear Investor,
January was a very volatile month, with news about the AI sensation Deepseek from China, among other things. This was not good news for AI-related stocks in the US. Over the weekend, there was much speculation about the impact Deepseek would have on American industry. If there is one thing investors dislike, it is uncertainty. The opening of the US stock markets on Monday, January 27, was therefore a battlefield for some AI-related companies, with losses of up to 30% in some cases. NVDA, the largest AI-related company, closed that day with a loss of -17%, which meant a write-down of around -$500 billion. That is more than the GDP of Sweden, Belgium, or Poland in one year!
Our portfolio was also affected by the Deepseek news. January ultimately closed with a loss of -3.77%. The SP500 index closed the month with a gain of 2.70%.
GH shares were by far the biggest winner in the portfolio in January. INOD had the most negative impact on the result this time.
The markets appear to be peaking somewhat, given all the volatility of recent weeks. The latest news about import tariffs in the US is also causing share prices to fluctuate. For now, the news about import tariffs and Deepseek is quickly being shrugged off by the markets, but that does not mean that the next news item will not have a negative impact on share prices. In any case, the system indicates that we should only be 25% invested next week.
Sincerely,
Henry van Ginkel