First Quarter characteristics and why changes were made in our investment portfolios
The first quarter was marked by a sharp rise in government bond yields, a continuing rise in inflation, the Fed's first rate hike and the pressure on stock markets, especially in the tech sector, which is particularly vulnerable to high inflation and rising interest rates.
During the first quarter we made changes throughout the range of our portfolios, in order to adapt to the rapid changes in macroeconomic conditions and our portfolios to connect better with the upcoming trends.
Market signals and fund managers’ outlook
There is no doubt that 2022 is completely different from 2021 as macroeconomic parameters are changing rapidly and estimates are uncertain. After two years in which the key American indices recorded gains of over 40%, it was logical and expected that 2022 would be a different year.
The positive correlation in all main assets resulted in portfolios, from the lowest to the highest risk ones, recording losses. In fact, in many cases, the losses of low and medium risk portfolios are equivalent to those of high-risk ones.
This is something that is observed to all fund managers. We feel satisfied, as our investment portfolios have managed to move with the smallest losses against both our competitors and the market itself. Given the circumstances, we will continue to monitor the situation and if deemed necessary the desired interventions will be made.
Below you can find XSpot Wealth performance of all portfolios, for the first quarter of 2022 in a chart.
How should investors move in the coming months?
A proper portfolio composition, but also the use of liquidity when opportunities arise, is the most appropriate strategy. Investors should have objective expectations as throughout the market, the returns follow the same direction, so the search for potential opportunities does not offer results in this time period.
Please remember that past performance is not a reliable indicator of future performance
This document does not constitute and shall not be construed as a prospectus, advertisement, public offering, or placement of, nor a recommendation to buy, sell, hold or solicit, any investment, security, other financial instrument or other product or service. This document is for general information only and is not intended as investment advice or any other specific recommendation as to any particular course of action or inaction.