June 4, 2023
It felt like a long month with more inflationary chat, more interest rate scares and the advancing goliath that was failing to meet an agreement on the US debt ceiling.
As Joe Biden said in March: ‘You ever know Wall Street not in consternation?’.
Once again, Wall Street was in consternation. Although, it wasn’t the banking crises anymore which is what Biden was referring to at the time. In fact, can you remember the banking crises? It seems to have gone away. The best way to bury a crisis is to have a different one.
The debt ceiling took most of the headlines and was what most traders were watching in May. It’s not the first time we’ve been through this. In 2011 the House and the Obama Administration negotiated for months on it until talks eventually collapsed. Markets went into turmoil, the S&P500 dropped over 16% in the final month before the deadline.
While this was always in the back of our heads, so was the fact that 2 days before the government would have defaulted, there was a compromise between Democrats and Senate Republicans to create a committee to look into cutting spending and increasing the debt ceiling.
Since 1960 Congress has raised the debt ceiling 78 separate times. There have been many cliff edges, but all have been resolved.
Once again, we had drama, we had markets falling, but this week the deal passed in the House of Representatives by a vote of 314-117. To not back it would be pure madness, and they know that (although 117 of them clearly don’t).
It then passed straight through the Senate by a vote of 63-36 and President Biden will now enact the measure into law. Disaster averted…………again.
So, May was definitely a volatile month in the markets. Here is what happened around the world:
Europe Monthly change %
The standout market above is the S&P500 which managed to stay flat on the month. This is mainly due to it being very overweight in the tech sector which has had a revival in 2023 outperforming every other: tech is back, for now.
The Portfolio Platform has had a great start to the year. We have many traders who have posted some fantastic returns so far in 2023. But with the markets falling last month as they did, how did our traders perform?
Many traders were short going into May, then gradually bought back as the market fell. It’s not possible to pick the top or the bottom, but it is possible to make money from good levels as the market oscillates.
Some of our newer traders had a great month with 3 posting gains of more than 6% in May alone. 🌱
However, from our experienced mainstream strategies, we had another solid month. Here is how the top 3 faired and how they are doing on the year so far.
What TPP is doing to the investment market, is showing professional strategies and making them available to everyone via a simple subscription model.
Traders are tasked with making money. Our traders are the best we can find, and their strategies have proven track records of performing. Once again, our active strategies have had the best month showing how being both long and short, can provide long-term results in a stagnant equity market.
“TPP might just be about to revolutionise investment for the retail market.”
- London Stock Exchange 2020