February was all about Trump, pretty much from start to finish. The big story for us was the shift to defence stocks, which rocketed once it became obvious that Europe would be forced to shoulder more of the burden for its own defence. It should really not have come as a big surprise for European governments, but US vice president JD Vance was pretty explicit at the Munich Security Conference.
Pretty much as soon as he sat down we were working on our hit-list of some of the top defence stocks to follow in Europe. Our defence play Babcock has been in our long-term bets portfolio for quite some time now, as we had anticipated that Europe would need to ramp up its defence spending. That position is now up 130%.
The Trump administration is having a very negative impact on the US economy. If the White House continues its current tariffs policy we anticipate a US recession and an increase in risk across the board in US assets. Hence for the time being we will be cutting US exposure and treating US investments with a much higher degree of caution than previously.
We will continue to provide subscribers with further analysis of the leading stocks in trending sectors. This helps to highlight the leaders that could become potential candidates for our own tip lists.
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