In May, we witnessed yet another episode of the U.S. debt ceiling drama, which has become a recurring theme for seasoned investors. However, this spectacle appears more like a theatrical performance rather than a true reflection of reality. It is difficult to fathom that U.S. politicians would willingly harm their own economy by allowing a default event to occur. Nevertheless, in this age of social media influence, there seems to be a fervent desire to challenge the U.S. dollar’s indisputable status as the reserve currency.
As a result, there is a noticeable shift among managers towards diversifying beyond U.S. investments, encompassing both equities and bonds. This includes exploring opportunities in emerging market stocks and local currency bonds.
On a different note, the technology sector continues its upward trajectory, with the QQQ index demonstrating an 8.5% increase for the month and an impressive 31% gain for the year. This surge is primarily attributed to the rapid advancements in artificial intelligence (AI).
See our non-hedged NASDAQ 100 Leaders Sub-strategy.
Logical-Invest Strategy performance
May witnessed modest market performance, with the S&P 500 Index ETF (SPY) gaining 0.5%, the 20+ Year Treasury Bond ETF (TLT) falling by 3%, and the Gold ETF (GLD) decline by 1.3%.
Our strategies were mixed for the month. The best performer for May was the US Market Strategy 2x (5.1%), followed by the non-leveraged version. The strategy seems to be holding all the right assets. 40% in QQQ, 36% in short term money market and 24% in gold.
Let us know what you think in our forum.
The Logical-Invest team.