Dear investors,
December saw a slight decline for the AEX, with the index falling by 0.35%.
RVM Strategy was +0.64%, RVM Retirement +1.23%, and RVM Analysis –3.12%.
THE MONTH OF DECEMBER
The US elections continued to play a role in December. The economic measures promised by the new Trump administration continue to cause market volatility.
THE WEAKNESS OF THE HEALTHCARE SECTOR ON THE STOCK MARKET: OPPORTUNITIES?
There was a notable weakness in the US healthcare sector, where the potential influence of the candidate for the Department of Health and Human Services, Robert F. Kennedy Jr., weighs heavily. He is known as an opponent of all kinds of vaccinations, of the unhealthy food produced by American corporations, and of pharmaceutical companies that have misinformed the public about their products and medicines in the past. The enormous problem of opiate addiction in the US is a good example of what Kennedy is targeting.
Nevertheless, we believe that it is precisely this relative weakness of the sector on the stock market that indicates opportunities here in 2025. Pharmaceutical companies are not listed on the AEX index; in the Netherlands, only Philips is present as a healthcare group. Philips had a good 2024, but a weak final month in line with the sector.
It will be difficult for the new Trump administration: on the one hand, it is good to promote a healthy lifestyle, but on the other hand, medical innovation is necessary, and knowing Trump, he will not want the American healthcare sector to perform poorly. The US has become an oligarchy, and the big pharmaceutical companies are oligarchs who need to be appeased.
RVM RETIREMENT SHOWED THE STRONGEST PERFORMANCE
Of our systems, RVM Retirement performed best in December. The momentum strategy with options was positive, as was the performance of the underlying assets in the portfolio.
RVM STRATEGY
RVM Strategy was also positive in December. The momentum strategy with options is virtually identical to that of RVM Retirement.
RVM ANALYSIS
In terms of closed positions, RVM Analysis had one of its best years ever, with +16.57%. This relates to momentum strategies in options and stocks throughout 2024.
The momentum strategy was also profitable in December.
However, there are many more long-term positions and fixed positions here that are driven by a long-term vision and fundamental analysis. In particular, one of our fixed holdings, which we have owned since 2012 and which has taken the portfolio to great heights during that period, is now the position that has been affecting the portfolio since mid-2024. However, we still view this holding positively, as there is no long-term sell signal, and fundamentally, this holding still meets all the conditions for an investment that we would like to have in our portfolio.
In terms of closed positions, RVM Analysis performed much better than RVM Retirement and RVM Strategy in 2024, but that does not mean much, as things may be different in 2025. More underlying values are traded here and there is a focus on the broader market, while RVM Strategy and RVM Retirement are more specialized, involving fewer underlying values.
All that remains is to wish you a prosperous 2025 and, of course, success in your investments!
Sincerely,
On behalf of Van Megen Systematic Trading,
Ruud van Megen
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