Portfolio Update - October 2025
Zadeed Azman
10/8/20251 min read
Investor Update: Strategic Adjustments Amid Market Uncertainty—October 2025
As we enter the final quarter of 2025, we are pleased to report a 15% year-to-date (YTD) return, outperforming many benchmarks and reflecting the strength of our disciplined investment strategy. However, the current market environment presents a mix of opportunities and challenges that require a cautious and adaptive approach.
Market Overview
The broader market has shown resilience despite significant headwinds. The S&P 500 has delivered a 14.83% price return YTD as of October 8, 2025, supported by strong performance in technology and AI-driven sectors. However, valuations across many sectors are beginning to look stretched, with major companies funding each other to sustain the rally, raising concerns about the sustainability of current price levels (Slickcharts).
Additionally, the Federal Reserve’s recent rate cuts have provided short-term momentum, but the labor market continues to soften, with unemployment ticking up to 4.3% and job growth falling below expectations (YCharts). These dynamics, coupled with geopolitical uncertainties and a government shutdown, underscore the need for vigilance.
Portfolio Adjustments
In response to these market conditions, we are making strategic adjustments to position the portfolio for resilience and long-term growth:
Increasing Exposure to Cryptocurrencies
Cryptocurrencies have shown potential as a hedge against traditional market instability. Bitcoin, for example, has risen 5.1% in September, reaching $114,309 per coin, while Ethereum has cooled slightly after a strong rally earlier this year (YCharts). Over the next few months, we plan to gradually increase our stake in crypto assets, ensuring a balanced and measured approach to this growing sector.Monitoring Valuations and Seeking Undervalued Opportunities
While many stocks appear overvalued, we remain focused on identifying fundamentally strong companies trading below their intrinsic value. This includes sectors that have lagged the broader market but show potential for recovery, such as small- and mid-cap equities, which have delivered strong recent performance (Edward Jones).Cautious Allocation in Overheated Sectors
With AI and technology stocks driving much of the market’s gains, we are carefully managing our exposure to these sectors to avoid overconcentration. While we remain optimistic about their long-term potential, we are mindful of the risks associated with frothy valuations.
Looking Ahead
As we navigate these uncertain times, our focus remains on safeguarding your investments while seeking opportunities for growth. We will continue to monitor macroeconomic trends, including the Federal Reserve’s rate policy, labor market developments, and geopolitical risks, to inform our strategy.
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