Tech Portfolio Overview - LO - Reduce cash - 2025/04/22
Tue Apr 22 2025
Portfolio Overview
04/22
90 days pause on reciprocal tariff from Apr 9th, deducting normally 30 days Trans-Pacific transportation, means merchandise order from US will be strong for the first 2 months, and likely will sharply decline from 2H of June. In the meantime, tone of Trump administration continue gets softer - both Japan and China, the 2 countries with biggest US treasury, are not rushing in reaching deal. Meanwhile, for US yield, China is not that influential as some investors feared, as China is no longer the largest US treasury holder anymore. UK has been buying and Japan has been holding.
With all the above, be ready for stable US yield, very strong manufacturing/consumption/order numbers in the short term, while with no Fed cut before June (different vs consensus).
Portfolio wise, our cash level has decreased vs beg-April. Previously it was >30%. We added low PE quality names on the long side - it's time to ADD.
