RIA: Portfolio Performance Review – July 2024

In July 2024, weaker global equity performance benefitted Moderately Aggressive portfolio that has lower portfolio allocation towards global equities.

On a year-to-date basis, the Very Aggressive portfolio has yielded 22.01% gain, driven by a strong return of ASN Equity Malaysia while the Very Conservative portfolio gained a decent return of 3.55%.

All portfolios registered positive returns despite a volatile month.

Market Commentary – July 2024

In July, global equities edged higher despite mid-month volatility, though a momentum shift is evident.

Taiwan, Japan, and the Netherlands, key year-to-date performers with significant AI exposure, were among the few markets to decline, influenced by Japan’s stronger yen as the Federal Reserve signals potential rate cuts.

The US posted positive returns but lagged global equities due to challenges in mega-cap tech. Conversely, previous laggards like Saudi Arabia, Thailand, Mexico, and Brazil ranked among the top performers.

Global earnings-revision momentum weakened overall, except in emerging Asia, where markets like Korea, Taiwan, Malaysia, and Thailand saw significant improvements, despite China remaining in negative territory.

RIA Reminder – Balancing Risk and Reward in Investing

Investing always involves risk, with different types such as market, credit, inflation, liquidity, and interest rate risks. Investing in a diversified portfolio that allocates assets wisely with regular review and rebalancing is crucial to manage these risks.

Even “safe” investments carry some risk, so it is important to balance risk and reward according to your goals and risk tolerance. Understanding and managing these risks can help you achieve your financial objectives.