Kim Bolton, president, and portfolio manager of Black Swan Dexteritas
FOCUS: technology stocks
Top Picks: Siemens AG, Rockwell Automation, ABB Ltd
MARKET OUTLOOK:
Since U.S. President Donald Trump’s inauguration, market sentiment pivoted from buying on dips to selling on rallies; that’s a big change since the bull run for equities in 2023 and 2024. We have increased our short equity indices hedge to approximately 50 per cent of the notional value of the stock portfolios, and we have a cash position of approximately 20 per cent. When market sentiment changes whereby market participants start buying on dips, we will deploy our cash and lower the hedge. Since April 2, when Trump announced his global tariff regime, stocks have experienced historically significant declines and gains in a compressed time.
It is impossible to anticipate stock market routs and panics, but it is proven over the past 30 years, missing the market’s 10 best days reduced returns by half, and missing the best 30 days reduced returns by 83 per cent. Sooner or later, markets recover and rally higher, so use this short-term volatility to buy quality stocks that can be held for three to five years and ideally longer. We will continue to trim those securities that are achieving their respective intrinsic values, and buy those technology growth stocks that exhibit longer, more lucrative investment runways.
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TOP PICKS:
Siemens AG (SIEGY OTC)
Siemens Aktiengesellschaft is a global technology powerhouse headquartered in Munich, Germany. The company operates across various sectors, including industrial automation, digitalization, smart infrastructure, mobility, and healthcare. With a strong emphasis on innovation, Siemens integrates robotics and artificial intelligence (AI) into its product offerings to drive efficiency and productivity.
Rockwell Automation (ROK NYSE)Rockwell Automation, headquartered in Milwaukee, Wisconsin, U.S., is a global leader in industrial automation and digital transformation. The company provides hardware, software, and consulting services aimed at increasing productivity, flexibility, and sustainability for manufacturing and industrial operations. Its solutions span control systems, robotics integration, analytics, industrial cybersecurity, and the Industrial Internet of Things (IIoT).
ABB Ltd (ABBNY OTC)
ABB Ltd is a global leader in electrification and automation, headquartered in Zürich, Switzerland. The company operates across four main business areas: electrification, motion, process automation, and robotics and discrete automation. As of 2023, ABB employed approximately 107,900 people in over 100 countries.
| DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| SIEGY OTC | Y | Y | Y |
| ROK NYSE | Y | Y | Y |
| ABBNY OTC | Y | Y | Y |
PAST PICKS: April 24, 2024
Astera Labs (ALAB NASD)
- Then: US$70.99
- Now: US$62.78
- Return: -12%
- Total Return: -12%
Marvell Technology (MRVL NASD)
- Then: US$64.85
- Now: US$55.83
- Return: -14%
- Total Return: -14%
Broadcom (AVGO NASD) – Stock Split July 15th, 2024
- Then: US$1256.82
- Now: US$178.94
- Return: 42%
- Total Return: 44%
Total Return Average: 6%
| DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| SIEGY OTC | Y | Y | Y |
| ROK NYSE | Y | Y | Y |
| ABBNY OTC | Y | Y | Y |
