New year, new strategy

The first week of 2024 has concluded and the start of the year has been classified as the worst in 2 decades (Bloomberg). After an excellent end of the year, investors are repositioning their portfolios and in that process seem to be de-risking them. That can be considered typical behavior for markets after a #ratehike cycle, in the expectation that #ratecuts will come simply to ease the effects of the restrictive environment created by a tough monetary policy. By sector, #semiconductors, #software and #technology were the losers of the week, and #healthcare, #utilities and #pharma were the winners. That is quite a reversal when compared to last year. Soon we will see articles and analysis on the January effect and how the first day, the first week and the month of January define the year in terms for performance. Investors are repricing assets in accordance with the economic reality.