How did the TPP strategies do v's the market?
May 3, 2023
TPP April Strategy Performance.
The Portfolio Platform outperforms even its own expectations in April.
The banks remained the focus in April even though central banks and governments continued to shrug off concerns.
After First Republic Bank also fell foul to withdrawals and poor decisions over the weekend, maybe it’s time for Federal Reserve to slow down and let the dust settle. Having said that, the bond market is currently pricing in an 85% chance of a rate hike this evening. However, if this is the end of the cycle, it will be welcomed.
During April, the problems continued, but as is always the case, equity indices quickly moved past it. Once of the advantages with TPP focusing mostly on trading indices is that we aren’t exposed to the same sector contagion that many stock pickers suffer from.
If one sector is down, another might be up. Stock indices are by their very nature already diverse and will move based on the overall macro-economic outlook and therefore has the luxury of thinking further ahead. The results, as you will see in the table below, are revolutionary.
Bank stocks are still way down from their highs, many markets suffered in March, but overall, April was a perfectly profitable month for most.
HSBC reported a trebling of first quarter profits, aided by higher interest rates.
NatWest and Barclays saw a similar increase in profits.
The FTSE in response managed a modest gain of a little over 2% on the month.
The European STOXX 600 index added 1.9% also driven by earnings following a turbulent March which saw the Swiss state-sponsored rescue of Credit Suisse.
Defensive sectors such as real-estate and healthcare, rose 5.2% and 4.7%, respectively, outpacing major European sectors for the month. Tech and miners were the top two monthly decliners, down 4.7% and 5.6%.
Data released on Friday confirmed that the euro-zone economy was broadly stagnant in Q4 and Q1.
The U.S. stock market gained modestly in April.
The S&P 500 rose 1.4% in April, thanks in part to more signs that inflation is cooling off, adding to the sense that the current interest rate hike cycle was coming to an end. At the same time, U.S. economic growth is clearly slowing down and the risk of a recession is on the rise.
Rising recession risk is a classic case of bad news being good news for the stock market, as investor expectations are rising for Fed rate cuts later in the year. But in the background, Congress is wading straight into a debt ceiling food fight, threatening a new downside risk just when the market was getting over its fears of a banking crisis.
There were few big winners last month, with the FTSE 100 being near the top of the pile but only gaining a little over 2%.
France and Germany saw modest gains with the rest of Europe fluctuating between positive and negative.
The biggest winner in April, anyone linked to one of The Portfolio Platform’s top strategies.
On the whole, our traders kept on doing what they’ve been doing all year: making money for their subscribers. Averages were high but a few stood out from the crowd.
Cambridge Futures got off to an uncharacteristically slow start this year. They have a very loyal following and in April, they showed us why. After disappointing in March, they held their nerve and turned it round in April.
It often feels that when a position isn’t going your way, it would be wise to get out. Sometimes it is, but sometimes it isn’t. There is a reason why you leave the trading to our experienced traders.
This month, they have taught us once again that they are the professionals, and they know best. In April, our most popular strategy managed an eye-watering 9.4% to put them back on track for 2023.
Well done to them, and well done to all their subscribers who have faith in them.
Having said that, while we are glad they doing well year to date, they don’t make the top 5 leaderboard. Here is where we stand going into May.
TPP Leaderboard for 2023 so far:
So far this year, TPP has outperformed even its own expectations. All those subscribed to these strategies are enjoying the benefits of professional long and short strategies. Last year, it was the turn of the ‘buy the dip’ strategies but this year, active trading is flying. Long may this continue and we look forward to reporting in a the end of May with more good news.
The current TPP market bias:
The majority of our traders have just completed an excellent start to Q2 after a great performance in Q1, in what has been a very challenging trading climate.
It seems that the majority of the ‘buy or flats’ and the ‘active’ strategies have timed many of the short/mid term moves fantastically well.
Even this week, many strategies took advantage of the market drop yesterday, locking in profits late last night and early this morning.
One thing is for sure, our traders will be looking to continue this recent run of good form.
If you have an underperforming portfolio or are residing in cash and waiting for an opportunity- contact our team for a FREE consultation.
Don't just hear about the investment revolution:
“TPP might just be about to revolutionise investment for the retail market.”
- London Stock Exchange 2020