Few investors could predict what they had in markets around the world for the past month or so.
However, for allocators who have decided to spin from US stocks at the turn of the year and move to a more unloved area of the market just by valuation environment, the recent market turmoil may have come as a slightly smoother sailing.
As reported last month, AJ Bell increased its exposure to European Ex-UK stocks by adding a Lightman European fund that combines the Lightman European Fund and BlackRock European Dynamic.
“Our rotation into European equities is working well,” said James Flintoft, director of investment.
“Investors seemed overly nervous about European politics heading into 2025, and there were actually some positive surprises in that respect.
Last time, we also noted that they moved to the emerging market ex-China strategy, as well as the standalone Chinese exposure via several ETFs.
How was it carried? Well, that’s true.
“Alibaba continues to have an astounding rally against the backdrop of strong results and excitement for AI qualifications, with an increase of over 65% this year,” he said.
Flintoft added that it represents more than 10% of the two products Alibaba holds in the space. Franklin FTSE China ETF and Amundi Msci China ETF.
One of the January changes in January was the introduction of an equally weighted US index, given that everything appears to be happening in Trumpland, and it is still unclear whether the wider US economy will occur unharmed.
