Assets we focused on: NVIDIA (NVDA) & Tesla (TSLA)

 

 

  • NVIDIA (NVDA):
    • NVDA continued its strong run, fueled by demand for AI-related chips and positive year-end earnings projections. Key partnerships in AI and data centers further boosted investor confidence.
    • Strategy: Incremental purchases during minor dips provided opportunities to lock in gains as NVDA climbed steadily throughout the month.
  • Tesla (TSLA):
    • TSLA saw moderate volatility, influenced by year-end delivery figures and advancements in EV production. Positive news about increased market share in Europe and Asia offset concerns about price wars in the EV sector.
    • Strategy: Short-term trades captured price swings around earnings announcements and delivery reports.

 

Commodities: Gold & Wheat

  • Gold:
    • Gold prices benefited from a softer U.S. dollar and geopolitical tensions, closing the month higher. The metal’s safe-haven appeal remained strong amid global uncertainties.
    • Strategy: Positions were held for steady gains, leveraging gold’s reliability during market fluctuations.
  • Wheat:
    • Wheat prices experienced volatility due to changing global supply-demand dynamics and weather-related disruptions. Prices edged higher toward month-end due to export restrictions by key producers.
    • Strategy: Trades focused on short-term opportunities, taking advantage of price movements tied to geopolitical events and market reports.

 

2. Trading Strategies:

  • Diversification: Balanced exposure to high-growth assets like NVDA and TSLA, alongside the stability of gold and wheat.
  • Risk Mitigation: Stop-loss orders and position sizing were key to managing volatility, especially in cryptocurrencies.
  • Sector-Specific Tactics:
    • Cryptos leveraged high-volume trading windows for quick gains.
    • Equities utilized technical analysis to identify entry points during fluctuations.
    • Commodities were traded based on fundamental market reports and geopolitical events.

 

3. Performance Highlights:

  • Dogecoin (DOGE): Achieved a favourable net gain, driven by short-term trades during price spikes.
  • Bitcoin (BTC): Globally delivered a 12% return, supported by institutional interest and market optimism.
  • NVIDIA (NVDA): Recorded a 15% increase, maintaining its position as a tech sector leader.
  • Tesla (TSLA): Gained 9% for the month, buoyed by strong delivery results and international expansion.
  • Gold: Yielded a 5% return, reflecting its role as a hedge against market uncertainties.
  • Wheat: Showed a 6% increase, benefiting from export restrictions and adverse weather effects.

 

4. Challenges Encountered:

  • Cryptocurrency Volatility: DOGE and BTC experienced sharp price swings, requiring disciplined risk management.
  • Macroeconomic Factors: Rising interest rate concerns affected sentiment across equities and commodities.
  • Geopolitical Risks: Wheat prices were particularly sensitive to global trade policies and supply chain disruptions.

 

5. Client Impact:

  • Profitability: The diversified portfolio achieved an overall net return of 9% for December, aligning with EM Finance’s low-risk strategy.
  • Risk Management: Effective strategies ensured that downside risks were contained, particularly in volatile assets like DOGE and TSLA.

 

6. Outlook for January 2025:

 

  • Dogecoin & Bitcoin: Continued monitoring of regulatory developments and market sentiment will guide trades.
  • NVIDIA & Tesla: Expecting steady growth, with a focus on AI advancements for NVDA and EV production for TSLA.
  • Gold & Wheat: Anticipating stability in gold amid ongoing geopolitical tensions and volatility in wheat due to unpredictable weather patterns.


December 2024 marked a productive month for EM Finance, with the portfolio achieving strong, risk-adjusted returns. By focusing on diversification, disciplined trading, and proactive risk management, EM Finance ensured stability and profitability for its clients.

For further details or specific queries, feel free to contact us.