Gold continues to perform well in client portfolios, along with select exposure to emerging markets. We currently have limited exposure to U.S. large-cap growth stocks, as relative strength has rotated toward international value.
Oil prices have trended higher amid escalating geopolitical tensions in the Middle East. Ongoing instability has supported demand for traditional “safe-haven” assets, including gold. Energy markets remain sensitive to geopolitical developments and supply dynamics, creating both risks and opportunities.
The U.S. dollar has shown relative weakness in recent months. Historically, periods of dollar softness have coincided with strength in hard assets such as gold, though this relationship can vary over time. Cryptocurrency markets, including Bitcoin-related ETFs, have experienced volatility despite earlier enthusiasm surrounding new product launches.
The S&P 500 and the NASDAQ-100 are currently trading below their 50-day moving averages, which often signals near-term technical caution. Meanwhile, several emerging-market indexes have shown improving long-term technical patterns after extended periods of consolidation.
Within U.S. equities, leadership has narrowed, and some of last year’s strongest mega-cap technology stocks have faced distribution pressure. Market rotations are a normal part of the investment cycle, as capital shifts toward areas demonstrating stronger relative performance.
Artificial intelligence continues to disrupt multiple industries, including software development and data infrastructure. Increased data usage and AI deployment have driven investment in data centers and memory-related hardware. Companies involved in memory and storage manufacturing may benefit from sustained long-term demand, although these industries remain cyclical and subject to supply/demand fluctuations.
Client portfolios have benefited from disciplined risk management and tactical allocation adjustments this year. By emphasizing areas demonstrating relative strength while reducing exposure to higher-volatility segments, we aim to participate in upside trends while managing downside risk.
Gold has historically been viewed as a store of value over the long term, particularly during periods of currency debasement, geopolitical tension, or economic uncertainty. While past performance does not guarantee future results, we believe maintaining diversified exposure to assets with favorable technical and macro characteristics remains prudent.
We remain focused on:
- Managing risk
- Following established market trends
- Allocating capital toward areas demonstrating sustained inflows
- Avoiding emotional decision-making during periods of volatility
As always, markets evolve. Our approach is to adapt as needed and position portfolios where opportunity appears strongest, based on objective analysis and risk controls.
The LORD knows the way of the righteous, but the way of the wicked will perish. Psalm 1:6