Global equity markets were positive last week but the global momentum is starting to fade. The MSCI World Index closed marginally higher while Asia was catching up, most world indexes are now up 6 % since the beginning fo 2019.
Our Model Portfolio increased its advance and outperformance, rising +3.34 % on the week for a +20.24 % since January 1st 2019.
On an annualized basis, our Model Portfolio is now running at an average of +23.99 % per annum over the past 61 months ( 5 years and 1 month )
One of our best performers last week was WESTERN DIGITAL CORP which added +18.75 % on better expected results and a positive recommendation.
In Europe, almost all our positions are now in the Green with ATOS and VALEO rising almost 5 % last week.
Our Japanese positions were all up with Canon and Mitsubishi UFJ rising more than the rest of the portfolio,
In China, JD.COM was the star performer up almost 7 %, Brilliance and Guangzhou also rose sharply as the auto sector recovered from its doldrums and Tongda Group has started to move as well. Banks and finance were strong and the number of positive technical configurations I China is amazing.
In Asia, all our positions were up with Hong Kong and Indonesia taking the lead and Dubai is now starting to show some signs of life.
Interestingly enough, our portfolio pf short positions was not a major drag last week as some stocks like Netflix clearly turned the corner and the SP500 and the Nasdaq underperformed the rest of the markets las week.
The strong rebound of the beginning of January has now corrected the excessive fall of the last three weeks of December 2018 and we see a two-tier market going ahead.
In the Western and US market, we are probably reaching an important intermediary top and investors should reduce exposure while in Asia and China in particular, last week clearly marked a break-out from the 2018 bear trend and we are just at the beginning of an important move in Chinese stocks.
Last week we increased our exposure to the 4 largest Chinese state banks where value is extremely compelling. We took some profits on our Chinese Tracker Funds and initiated a new position in Commodities going Long Platinum and short Palladium.
For the time being, both positions have been positive contributors to our model portfolio.
We are still very long stocks with a very strong long exposure to China, Asia and Europe and a net short exposure to the USA. Over the coming weeks, we shall reduce global equity exposure in Europe and Japan, and increase our positions in Gold and Silver.