Global Financial Market Review for the First Half of 2024

 

In the first half of this year, the pause in U.S. interest rate hikes led to mixed performance across global financial markets, making diversified asset allocation more crucial than ever.

 

Driven by expectations of Federal Reserve rate cuts and the AI boom, U.S. stocks continued their strong performance from 2023. The "Mega 7" stocks showed robust upward trends, with the Nasdaq index rising by 18.13% and the S&P 500 index gaining over 14%.

 

China's GDP grew by 5% in the first half, with some bright spots but also struggling sectors like real estate and small-cap stocks. The Shanghai Composite Index slightly declined by 0.25%, while the ChiNext Index significantly dropped by about 10.99%.

 

Hong Kong's stock market remained sluggish. After four consecutive years of decline, the Hang Seng Index has only increased by 5.5% year-to-date. However, the Hang Seng Tech Index continued to face downward pressure, falling an additional 5.57%, marking its third consecutive year of decline.

 

 

How Did AQUMON's Portfolios Perform?

 

AQUMON's global asset allocation strategy is rooted in scientific principles, utilizing big data and algorithms to achieve stable, risk-adjusted returns for our clients.

 

AQUMON's Classic Three-Step Process:

 

• Select broad asset classes for allocation.

 

• Carefully choose ETFs to represent these asset classes.

 

• Dynamically adjust weights based on correlation observations.

 

Our model-driven approach, combined with strict risk control and scientific diversification, successfully helps clients reduce investment risk and achieve steady returns.

 

Flagship Portfolios:

 

SmartGlobal | Hong Kong ETF Portfolio Continues to Deliver Outstanding Returns

 

• The SmartGlobal portfolio continues to fulfill its promise of providing stable and attractive returns, with the aggressive allocation (80% stocks, 20% bonds) achieving quarterly, year-to-date, and one-year returns of 3.88%, 8.42%, and 10.21%, respectively.

 

• This commendable performance is attributed to the strong returns from 10 Hong Kong-listed ETFs, representing different asset classes, carefully selected and scientifically allocated by AQUMON.

 

• In the first half of 2024, we observed a high Sharpe Ratio, indicating impressive performance across all risk categories, with excellent risk control.

 

 

SmartGlobal Max | U.S. ETF Portfolio Achieves Strong Growth

 

• Thanks to the scientific allocation to high-quality global assets, our SmartGlobal Max aggressive portfolio (80% stocks, 20% bonds) achieved remarkable quarterly, year-to-date, and one-year returns of 1.51%, 7.77%, and 12.48%, respectively.

 

• The consistent positive returns of the SmartGlobal Max portfolio are due to its focus on 21 U.S.-listed ETFs, achieving true global diversification by covering more assets.

 

 

Thematic Portfolio Performance Review:

 

In the first half of 2024, half of our thematic portfolios outperformed their respective benchmarks. In the second quarter of 2024, the returns of "Dividend Picks," "Hong Kong Industry Leaders," "Global Tech Giants," "Better World," and "World Industry Leaders" all reached double digits. After purchasing the core global asset allocation portfolio, thematic investments can bring even more substantial returns.

 

 

 

Global Market Outlook and Investment Direction for the Second Half of 2024

 

As we enter the second half of 2024, we are at a critical juncture in the monetary policies of major global economies. Many central banks began cutting interest rates in the first half of 2024, and the Federal Reserve may follow suit in the second half. This shift presents new opportunities for the investment environment.

 

However, potential risks exist. The U.S. presidential election in November will be a focal point for financial markets, increasing uncertainty in monetary policy. While we do not expect the election results to disrupt stock market trends, potential policy changes may cause short-term volatility.

 

The Federal Reserve's rate cuts mean that the focus on money market funds and short-term Treasuries over the past few years will shift. We recommend investors convert cash to asset allocation and focus on creating a more balanced and diversified portfolio of stocks and bonds to mitigate risks while achieving relatively stable returns.

 

AQUMON has been dedicated for seven years to building the strongest asset allocation portfolios, earning the trust and affection of our clients. In the future, we will continue to improve and upgrade our algorithm strategies, add new targets (such as the highly anticipated BTC/ETH ETF portfolio), and bring more possibilities to our clients' investments.

 

Thank you for your continued support and trust in AQUMON. We are excited about the opportunities ahead and look forward to helping you achieve your financial goals.

 

About us

AQUMON is a Hong Kong based award-winning financial technology company. Our mission is to leverage smart technology to make next-generation investment services affordable, transparent and accessible to both institutional clients and the general public. Through its proprietary algorithms and scalable, technical infrastructure, AQUMON’s automated platform empowers anyone to invest and maximize their returns. AQUMON has partnered with more than 100 financial institutions in Hong Kong and beyond, including AIA, CMB Wing Lung Bank, ChinaAMC, and Guangzhou Rural Commercial Bank. Hong Kong University of Science and Technology, the Alibaba Entrepreneurs Fund, affiliate of BOC International Holdings Limited, Zheng He Capital Management and Cyberport are among AQUMON's investors. 

 

The brand is held under Magnum Research Limited and is licensed with Type 1, 4 and 9 under the Securities and Futures Commission (SFC) of Hong Kong. AQUMON is also licensed by the U.S. Securities and Exchange Commission (SEC) and the Asset Management Association of China (AMAC).

 

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