By
Borsgade
In this July 2024 letter to shareholders, Kurt Kara and his team behind Maj Invest Value provide their quarterly portfolio update.
They give an update on the macro environment and portfolio changes during the quarter (in Danish).
Here’s the key take-aways on the macro front:
The Federal Reserve will maintain interest rates at a 23-year high of 5.25-5.50% due to disappointing inflation data, delaying any rate cuts until at least the second half of the year.
Despite a slight rise in inflation, the Fed sees no need for further rate hikes, reflecting a balanced risk assessment towards full employment and controlled price increases. This announcement positively impacted the market, boosting global stocks.Global trade is expected to more than double this year as inflation decreases and a strong U.S. economy drives activity.
OECD, IMF, and WTO predict significant recovery in global trade flows after a downturn in 2023 caused by high prices, rising interest rates, and weak demand. The OECD forecasts a 2.3% increase in global trade this year and 3.3% in 2025, while the IMF anticipates a 3% growth in trade volumes in 2024. This optimistic outlook has also strengthened the U.S. dollar against major currencies like the Euro and Yen.
(NB: Translation from Danish by Borsgade)
In the second quarter, three portfolio adjustments were made. The Japanese real estate company Daito Trust Construction was completely sold out of the portfolio. Additionally, the American retail chain Tractor Supply Co. and the Canadian gold mining company Barrick Gold were fully divested.
The proceeds were used, among other things, to establish new positions in the American gold mining company Newmont Mining and the American health insurance company Elevance Health. Furthermore, a new position was established in the American logistics giant United Parcel Services (UPS).
Share the news
The above has been prepared by Børsgade ApS for information purposes and cannot be regarded as a solicitation or recommendation to buy or sell any security. Nor can the information etc. be regarded as recommendations or advice of a legal, accounting or tax nature. Børsgade cannot be held liable for losses caused by customers’/users’ actions – or lack thereof – based on the information in the above. We have made every effort to ensure that the information in the above is complete and accurate, but cannot guarantee this and accept no liability for errors or omissions.
Readers are advised that investing may involve a risk of loss that cannot be determined in advance, and that past performance and price development cannot be used as a reliable indicator of future performance and price development. For further information please contact info@borsgade.dk
Francois Rochon, CIO of Giverny Capital, recently shared his approach to navigating market crashes on the Meb Faber Podcast. His perspective emphasizes acceptance, preparation, and strategic action rather than panic or futile attempts at market timing.
In his latest memo “Nobody Knows (Yet Again)”, Howard Marks addresses the profound uncertainty facing investors and policymakers amid recent upheavals in global trade and economic policy. Drawing on parallels to the 2008 financial crisis and the Covid-19 pandemic, Howard emphasizes the limits of forecasting in unprecedented situations and the importance of rational, flexible decision-making despite the absence of clear answers.
In this recent interview, François Rochon, founder of Giverny Capital, shares his insights on optimal portfolio strategy. François emphasizes a balanced and disciplined investment philosophy that prioritizes quality over excessive diversification.
In his recent article, NYU professor Aswath Damodaran shares his thoughts on how politics, globalization, and disruption has changed the investing landscape.
