Dear PrimeETF Readers,
The first month of 2025 has been exciting for investors worldwide, and PrimeETF is no exception.
Let me tell you a story about the markets, technology, and how we’re navigating this dynamic environment with a smile and strategy.
A Tale of Two Markets
Imagine a race where runners start strong but slow down as the road gets steeper. That’s the stock market in January 2025. The S&P 500 (SPY) and Nasdaq (QQQ) are running well but have hit a few bumps. Globally, everyone is talking about DeepSeek and ChatGPT, the technology superheroes. These AI giants are helping businesses and investors make smarter decisions faster than ever.
But not everything is smooth. Small-cap stocks stumbled, value stocks are returning in the game, and gold—the shiny yellow metal—is glimmering again. Investors are playing it safe while keeping one eye on future growth.
PrimeETF Performance Snapshot
Our portfolio keeps pace with the Nasdaq and S&P 500, providing steady returns while staying resilient in a shifting market.
S&P 500 vs PrimeETF portfolio
NASDAQ 100 vs PrimeETF portfolio
Source: PrimeETF January Portfolio 2025
Portfolio Rebalancing: December 2024 vs. January 2025:
IBIT – Exited and locked the profits.
PrimeETF Portfolio Asset Allocation
PrimeETF – Total Portfolio Returns
PrimeETF Portfolio Asset Allocation
Key Changes and Why They Matter
- Gold is Back (IAU): Gold is a hero when markets are uncertain. It’s like having a safety net when walking a tightrope. We’ve added it to balance risk.
- Value Stocks Shine (VTV): Value stocks are the tortoises of investing—slow but steady. They’re perfect for these cautious times.
- Goodbye to Small-Cap Growth (VIOG): Small-cap stocks stumbled, so we waved goodbye for now, reducing volatility in the portfolio.
- Sold Crypto (IBIT): Bitcoin had a great run, but we locked in a 9.78% gain and exited the position.
Global Outlook: DeepSeek, ChatGPT, and the Future
The world is buzzing about DeepSeek, a new AI tool for investment analysis, and ChatGPT, which helps everyone from students to CEOs. These technologies are shaping how we understand markets, making predictions smarter and faster. Globally, Europe is focusing on green energy, China is reopening, and the U.S. is tackling inflation.
Gold and value stocks are like the wise elders of investing—always reliable. Meanwhile, growth stocks are the daring adventurers, paving the way for new opportunities.
In a significant escalation of trade tensions, President Donald Trump has imposed tariffs of 25% on imports from Canada and Mexico and 10% on goods from China, effective February 4, 2025. The administration justifies these measures as necessary to address issues related to fentanyl trafficking and illegal immigration. (Source: apnews.com )
In response, Canada and Mexico have announced retaliatory tariffs on U.S. goods, while China plans to file a lawsuit with the World Trade Organization and implement corresponding countermeasures. (Source: businessinsider.com )
Economists warn that these actions could exacerbate inflation and disrupt global supply chains, potentially leading to higher consumer prices and strained international relations.
What’s Next for PrimeETF?
We’re entering February with:
- A balanced portfolio of growth, value, and defensive assets.
- A commitment to steady growth and minimized risk.
- Simple investing strategies for busy professionals like you.
Thank you for being part of PrimeETF.
Let’s make 2025 a year of success together.
Disclaimer
This portfolio update is not financial advice and should not be construed as such. Please consult your financial planner or advisor before making any investment decisions. The opinions expressed here are the author’s own and do not represent the views of any organization. Investing based on PrimeETF’s strategies is done at your own risk.
Warm regards,
Sriram Balu
PrimeETF
“Simplifying Investing for Busy Professionals”
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