Q1 2023 Portfolio Update
The below is a summary of the performance of our portfolio for Q1 2023.
The composition of our portfolio is the outcome of the research we conduct under the StockOpine’s Newsletter, which we share with our subscribers through our in-depth reports.
Deep dives of Q1 2023:
1. A note on the economy
While we do not claim to be economists, we wanted to share some of our thoughts for the upcoming year.
With the rising interest rates to compact inflation, the ongoing layoffs, the geopolitical tensions and the financial industry turbulence, we anticipate another challenging year rather than a healthy macro environment for 2023. Thankfully, recession is not here yet and a soft-landing scenario appears more possible.
As shown in the screenshot below, the International Monetary Fund ("IMF") projects a more prominent slowdown in advanced economies like the US and the Euro Area.
Source: IMF, April 2023 World Economic Outlook
If you are interested to read more about the global economic outlook here is the link to the Overview of IMF, April 2023 World Economic Outlook report. Do spend 10 minutes to read the Foreword and the Executive Summary.
Although the macro environment is crucial and can impact our forecasts or even the timing of opening a position, our investment strategy is long term oriented. We strive to select stocks with resilient business models that can sustain economic cycles.
Our Q1 2023 and Year to Date (“YTD”) total return as of 31 Mar 2023 was 16.3% compared to 7.5% of S&P 500. As a result of the Q1 2023 performance, our return since inception (28 January 2022) turned positive to 5.2% compared to a negative 5.4% of the S&P 500 over the same period.
Source: S&P Dow Jones Indices, Broker, StockOpine analysis