April Portfolio Update: Genevieve makes some moves!

Hey, GRIT VIP! 🚀 

No sugarcoating here, folks. It's been a challenging month.

April was the S&P's roughest month yet in 2024 and the worst since September 2023.

➡️ S&P 500 dipped -4.2%

➡️ NASDAQ took a hit down -4.4% (breaking its 5-month winning streak.) 😭

But let's be realistic: did we genuinely anticipate the market to keep appreciating by +5-6%/quarter?

Expecting a whopping 20-25% surge in 2024? Not likely.

It brings to mind a wise caution from Denzel Washington to Will Smith following his incident at the Oscars.

“At your highest moment, be careful. That’s when the devil comes for you.” 

I may be a bit dramatic, but you catch my drift.

It's crucial to play defense when the rest of the world is on the offense. As Uncle Buffett always reminds us, we must be “fearful when others are greedy and greedy when others are fearful.”

And on that note, as you're aware, a significant portion of my portfolio (+14%) is parked in cash, yielding nearly 5%.

But before we delve into any adjustments to the portfolio, let's recap the key insights we've gleaned over the past month:

1. ✅ Earnings

2. ✅ FED & Inflation

3. ✅ Other Intriguing Observations!

4. ✅ Portfolio Changes in April 

Let’s dive in!

1. ✅ Earnings

At the time of my writing this, RBC reports that over 45% of S&P 500 companies have released their earnings, with an impressive 80% exceeding expectations.

According to FactSet's data for Q1 2024, the S&P 500's blended year-over-year (YoY) earnings growth rate stands at +3.5%. If this trend continues, it will mark the index's third consecutive quarter of YoY earnings growth.

In Q1 2024, the blended net profit margin for the S&P 500 rests at 11.5%, in line with the year-ago figure and the 5-year average. Notably, it surpasses the net profit margin of the previous quarter.

Furthermore, both the percentage of S&P 500 companies reporting positive earnings surprises and the magnitude of these surprises exceed their 10-year averages.

In summary, it's shaping to be a robust earnings season so far!

Now, let's shift our focus to the two largest sectors, Technology & Financials, which collectively represent over 42% of the S&P 500:

➡️ FINANCIALS:

In Q1 2024, the financial sector delivered impressive earnings, with most significant banks surpassing expectations. Notably, financial stocks have outperformed the broader index year-to-date, boasting a 7.3% increase compared to the S&P 500's 5.5% uptick.

According to FactSet, industry giants like Goldman Sachs, JPMorgan Chase, Morgan Stanley, Citigroup, Progressive, and Wells Fargo posted notable positive earnings surprises!

Now, let's delve into the details of the ONLY U.S. bank in my portfolio:

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