Q1 2024 Fund Recap: What are mooers' favorite investment themes amidst uncertainty?
Hi, mooers! ![]()
Inflation's up, and rate cuts are on hold, but US Treasury bonds and money market funds are still up there. Tech stocks and commodities? Quite the seesaw in the last quarter. Mooers have been on top of it, forecasting and feeling the market pulse.
Let's take a moment to review the market's recent big stories and investment chances. We'll also go over expert responses to your questions, helping us all get ready for the next quarter's investments.
Market lookback
The wait for rate cuts goes on, and the investment trend from the end of 2023 stays its course.
Tech takes a hit
After $Super Micro Computer(SMCI.US$missed its Q3 forecasts, $NVIDIA(NVDA.US$saw a steep 10% fall in the third week of April, sparking a tech stock selloff that wiped out about $950 billion from the top US tech firms in a week. Despite AI stock bubble fears, there was a mix of risk and chances for the taking.
@104790679 bullish on $NVIDIA(NVDA.US$, buying up shares during the dip. Now as he posted, "NVIDIA never lets me down", he reaped a flourishing return. View more>>
Earnings season saves the day
Following the tech selloff, earnings season arrived, turning the tide with strong reports from industry leaders like $NVIDIA(NVDA.US$, $Amazon(AMZN.US$, and $Alphabet-A(GOOGL.US$.
The April P/L challenge saw a buzz around tech stock investments and related funds. Mooers also showed keen interest in tech funds in topic votes. $BGF World Technology Fund(LU0056508442.MF)$ received lots of votes and expectations, but $Fidelity Funds-Global Technology Fund(LU1046421795.MF)$ ended up outperforming, likely due to its diversified holdings.
@SuperNoobPaPa continued to Dollar Cost Averaging into $BGF World Technology Fund(LU0056508442.MF)$. Because of certainty about the current market, he decided to switch to a lump sum for a lower cost in May. His long-term commitment and faith in tech have paid off, making this fund the star of his portfolio. View more>>
@mr_cashcow compares the positions of $BGF World Technology Fund(LU0056508442.MF)$ and $Franklin Technology Fund(LU0109392836.MF)$, where BGF is suffering from bad news about Apple, one of its top three holdings. He also used the VS compare function to compare the trend of the two funds and found that BGF had better performance. Now he was still optimistic about the future of tech stocks and adopted a strategy of buying in dip. View more>>
Fed rate cut hopes dim
Expectations for a Fed rate cut have been dashed throughout the year. After April's PCE data release, the Fed maintained a tough stance, which is good news for US Treasury bonds and money market funds. Mooers have shared their thoughts on these investments.
@doctorpot1 thought that once the Fed cuts rates, higher bond prices would lead to lower yields. In a low interest rate environment, investing in long-term bonds would be a better option. We should all consider adjusting our portfolio and keep an eye on the economic situation. View more>>
@102362254 shared his asset allocation methodology: 50% of capital should be allocated to funds to enrich the investment portfolio, and bond funds provided a better diversification of risk compared to U.S. Treasuries. Currently, he is looking at funds such as $PIMCO GIS Total Return Bond Fund QDis(IE00B0M2Y900.MF)$ and $Fidelity Funds - Global Bond Fund YDis(LU0048582984.MF)$. View more>>
@约翰の理财库 allocated his capital to $CSOP USD Money Market Fund(SGXZ96797238.MF$ for higher liquidity and return while holding other assets like stocks and options. View more>>
@ljxP thought we should invest in safe assets utilizing the current high interest rate and put his safe investment cash in $Fullerton Fund - Fullerton SGD Liquidity Fund(SGXZ40088619.MF$. View more>>
Gold prices hit new peaks
Since March, the COMEX gold price has climbed to new heights, driven by anti-globalization, central banks' gold reserve demands, and other factors.
@103057627 thought gold is in an uptrend and is positive on $BGF World Mining Fund (LU0075056555.MF)$. View more>>
@steady Pom pipi capitalized on this trend with smart investments in $BGF World Gold Fund(LU0055631609.MF$. View more>>
Market forecast
Tech stocks have rebounded and look set to stay in the spotlight. With US national debt over $35 trillion and interest rates high, CME Group's FedWatch tool predicts a 69% chance of a rate cut in September and 80% in November. Like the Fed, investors are eager for economic improvement and new investment prospects. In these times of uncertainty, many still see funds as a safe bet.
CSOP Asset Management Q&A Recap
In the You asked, we answered: Q&A with CSOP Asset Management Q&A session, CSOP Asset Management addressed your questions about $CSOP USD Money Market Fund(SGXZ96797238.MF$. One common concern was the challenges the fund has faced.
CSOP Asset Management has categorized these into the following three risks and responded to them in detail.
Credit Risk: CSOP Asset Management utilizes diversified allocation to reduce risk and invest in underlying assets that are safe and relatively unaffected by the political environment.
Interest Rate Risk: The current ” high for longer” expectation for interest rate remains favorable, and the Fund's positions with an average maturity of about 4 months, which provide a lead time to help investors smooth their cash flow even if interest rates (in both directions) change drastically. In addition, the Fund has the intention to use derivatives or conduct any FX hedging to mitigate risk.
liquidity risk: The Fund has diversified exposure to money market instruments with different maturities and most of the assets have good liquidity to support investors' redemption needs (including worst-case scenarios).
*A bonus of 50 points will be rewarded to the writers of the post we mentioned above!
Your curiosity about other funds has been noted! To help everyone learn more, we're setting up a fund review section. Share your questions and the topics you're interested in. Don't forget to vote below on which fund topics you're most eager to dive into!
Please feel free to share the topics you'd like to see covered in the comments below. The top five mooers with insightful and relevant comments can earn 50 points.
We appreciate the ongoing support and involvement of all our mooers! Your feedback and suggestions are vital in helping us create more engaging and valuable events. Thank you in advance for your contributions!
Happy investing, and see you next time!
Share your insights with us and win rewards!
17 May - 31 May
50 points: for writers of the top 5 influential posts of over 50 words
Notes:
Selection is based on post quality, originality, creativity, and influence.
Posts that are not original or relevant shall be excluded.
All rewards are mutually exclusive.
All rewards will be distributed to your universal account within 15–30 working days after the winner announcement.
This presentation is strictly for informational and educational purposes and is not a recommendation or endorsement of any particular investment or investment strategy. See this link for more information.
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mr_cashcow : How about more coverage on bitcoin related topics such as the differences between the many bitcoin ETFs
Are there any funds that focuses on bitcoins related securities?
I have also started venturing into funds that gives out monthly dividend and that seems promising
Also thanks for the mention and bonus points
102362254 : I'm interested in Medical/Healthcare Funds, which typically invest in pharmaceutical companies, biotechnology firms, medical device manufacturers, and healthcare service providers.
Investing in Medical/Healthcare Funds means putting money into companies that make medicines, medical devices, and offer healthcare services. These funds benefit from new medical discoveries and innovations. It's a good way to support companies that improve people's health and lives, and I want to learn more about this fund topic.
I Am 102927471 : I'm interested in technology and energy and health care too. Put my investment in that sector before and now.
doctorpot1 : I'm interested in understanding the potential impact on the stock market caused by the US-China trade war, especially the decoupling between these two economies and the broader de-globalization trend between the East and the West.
For instance, I see the possibility of the US and China banning each other's electric vehicles (EVs) on national security grounds, viewing the EVs' cameras as potential spying tools. This could be just one of many such moves in the future.
What would be the impact on the US and Chinese stock markets? Which countries' stock markets would be most adversely affected, and which might benefit the most from this scenario?
sociable Dingo_8604 : I am interested in commodities like gold and silver. Currently all the hype is on AI and it seems likely the interest cut will happen this year. Gold and silver are also trending upwards so it seems good to invest in these as I worry the AI bubble may burst any moment.
Also the recent uptrend of China stocks.
What types of suitable funds to invest for potential growth related to gold/silver and China market?
cola1010 : I'm interested in exploring the potential implications of emerging technologies on sustainable agriculture for consumers, specifically how advancements in artificial intelligence and precision farming can enhance crop yield and reduce environmental impacts.
What roles do you see these technologies playing in shaping the future of agriculture, and how might they contribute to global food security?
ZnWC : Moomoo has already covered many interesting and investment topics. My favorites are Moomoo Cash Plus Fund - Fullerton SGD Cash Plus Fund and CSOP USD Market Money Fund, the impact on US Fed interest rate cut, the risk (and opportunity) during the earnings month and US election.
To make the discussion more interesting, I suggest the followings
1) Encourage users to share their P/L and investment strategy. It can be based on FA, TA or an event. For those who want privacy, he can use papertrade to do so.
2) Share the trading history and their best (or worst) investment preferably with a screenshot. He can share what went right (or wrong) and the lesson learned.
3) Pick and share a contemporary event and what impact it has on our investment goal and plan. For example Bitcoin, Meme stock, Bank collapse, US Fed interest rate cut etc. Because the event may come suddenly, Moomoo can reward users who create "breaking news" posts which can earn likes and useful comments.
103057627 : with interest rate almost set to be cut, I do expect lower yields for mmf n t-bills. I started on short term bond, pretty happy with returns. Will start looking at longer bond funds. qn is how to switch funds b/w mmf vs short term bond vs other bond/dividend yielding funds in different rate cut scenario.
hyperpc : I'm also interested in technology, energy, and healthcare. Put my previous and current investments in that area.
103586618 : Short the market!!!
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