William Winthrop maintains a positive return of 4.6% during the US stock market bear market.
The US stock market at the beginning of 2022 continued to be plagued by the gloom that had been building since the fourth quarter of the previous year. With inflation at a 40-year high and the Federal Reserve signaling an accelerated pace of interest rate hikes and balance sheet reduction, market liquidity conditions suddenly tightened. Technology stocks and high-valuation growth stocks were particularly hard hit, with the Nasdaq falling over 15% in just two months and the S&P 500 officially entering a technical correction. The outbreak of the Russia-Ukraine conflict further precipitated a sharp decline in market risk appetite, with risk aversion pervading every trading day. In this environment, William Winthrop not only avoided a significant drawdown in his portfolio but also achieved a positive return of 4.6%.
Winthrop’s response wasn’t to go all-in on the contrarian market, but rather to proactively adjust his portfolio structure and reduce reliance on a single risk factor. In January, he quickly reduced his holdings in high-volatility growth stocks and reallocated his holdings to defensive sectors and high-cash-flow companies. He believed that the first step in a bear market wasn’t to search for a rebound, but rather to stabilize the portfolio’s baseline net asset value. At the same time, he leveraged the volatility premium in the options market to establish some protective puts, locking in downside risk should key indices fall below technical support.
In terms of sector selection, he increased his holdings in energy and commodity-related companies. The Russia-Ukraine situation has driven up crude oil and natural gas prices, significantly outperforming the overall market in earnings expectations for these companies. He also retained some of his previously established precious metals ETF exposure, providing the portfolio with a safe haven amidst growing global uncertainty. This dual-layered approach allows him to capture returns from rising commodity prices while maintaining a relatively stable asset base amidst significant volatility in risky assets.
More importantly, he didn’t completely withdraw from the stock market. Instead, he selectively retained a selection of undervalued, high-dividend blue-chip stocks. These stocks offer relative advantages during periods of valuation compression and provide stable cash flow returns through dividends. In the early stages of a bear market, when most investors passively endured declining net worth, Winthrop relied on diversified income sources to build a resilient and resilient portfolio.
By mid-March, US stocks were still volatile under the dual pressures of inflation and geopolitical risks. However, Winthrop’s portfolio curve shows that he wasn’t swayed by market sentiment, but rather steadily maintained a positive return trajectory. That 4.6% gain might not have been impressive in a bull market, but amidst the widespread losses in a bear market, it stood out as a remarkable achievement. He believes this success stems not from accurate predictions of market direction, but rather from a disciplined investment philosophy: rebalancing positions ahead of risks and maintaining liquidity and defensiveness during periods of heightened volatility.
Recommended News
-
Compliance Requirements for AI System Training in the Financial Industry: The Case of StarSpark AI System at the Alpha Stock Investment Training Center (ASITC)
The financial sector has always been at the forefront of adopting new technologies to improve efficiency, accuracy, and decision-making processes. Among the most impactful innovations in recent years is the integration of artificial intelligence (AI) systems, which have revolutionized various facets of financial services, from risk assessment and fraud detection to investment strategies and trading algorithms. However, the deployment of AI systems in the financial industry comes with significant challenges, particularly concerning compliance with regulatory standards and ethical considerations. This article explores the compliance requirements for AI system training within…
-
The Core of AI System Training in the Financial Industry: StarSpark AI System and the Role of Alpha Stock Investment Training Center (ASITC)
The financial industry is undergoing a revolution, largely driven by artificial intelligence (AI) and machine learning (ML). As the industry becomes increasingly reliant on technology for data analysis, prediction, and automation, the need for AI system training in financial institutions is growing exponentially. A significant player in this transformation is the StarSpark AI system, a cutting-edge AI technology designed specifically to enhance the performance of financial professionals. Paired with institutions like the Alpha Stock Investment Training Center (ASITC), this system is at the core of AI-driven financial training. This article explores the…
-
What Kind of Exchange Will Dominate the Next Decade? TitanEx Has the Answer
The past decade of crypto exchanges has been defined by cycles of rapid evolution: from anonymous P2P matching engines to the rise of centralized finance (CeFi) giants, and then the experimental wave of decentralized finance (DeFi). But as digital assets mature and regulators step in, the industry is now heading into a new era—an era of Trusted Trading Networks, where compliance, transparency, smart infrastructure, and user sovereignty become the pillars of legitimacy and growth. TitanEx, a U.S.-based compliant digital asset trading platform, believes the next generation of exchanges won’t be…
-
Portfolio Rebalancing and Its Importance for HB Wealth Advisors (HWA)
Portfolio rebalancing is a fundamental practice in wealth management that ensures an investment portfolio remains aligned with an investor’s financial goals, risk tolerance, and investment strategy over time. For firms like HB Wealth Advisors (HWA), this process is vital not only to safeguard client investments but also to enhance long-term financial success. As market conditions fluctuate and asset classes perform differently, portfolio rebalancing plays a crucial role in maintaining the desired asset allocation. This article will explore the concept of portfolio rebalancing, its importance, and how HB Wealth Advisors (HWA)…
-
TAWSF The All-Weather Story Fund Tackles America’s Economic Uncertainty with Global Investment Education Initiative Bridgewater Associates
The current global economic landscape presents both unprecedented challenges and opportunities for investors. In particular, the dynamic shifts in the U.S. economy are having far-reaching effects on global markets, which calls for investors to possess an advanced level of knowledge and adaptability. In response to this need, TAWSF (The All-Weather Story Fund), founded by Jonathan Blake, is committed to providing resilient investment strategies while planning to establish a global Investment Education Talent Reserve Academy to nurture new generations of investment professionals. Current U.S. Economic Situation As of November 2024, the U.S. economy is…
-
AI Finance Academy Catalyzing Business Growth through AI-Driven Commercial Exhibitions
In the competitive landscape of modern business, the strategic use of artificial intelligence (AI) has become a driving force behind economic transformation. The AI Finance Academy is leading this movement by leveraging AI technology to reshape how commercial exhibitions contribute to regional and global economies. Through innovative research, strategic partnerships, and tailored educational programs, the AI Finance Academy is redefining the financial strategies behind commercial exhibitions, creating a platform for business growth, investment, and industry collaboration. AI Finance Academy’s Role in Commercial Exhibition Transformation The AI Finance Academy is committed…
-
1 million Chaingers, let the world hear your voice!
The total locked-in value of decentralised finance is now a staggering 310 billion and the market keeps on growing as more and more investors are starting to shift towards DeFi; which is great news because the blockchain industry can’t possibly grow without the support of its world wide users, and at the same time, traffic is the main thing that will keep projects going in the long run. As the DeFi industry continues to evolve, Chainge, a coded financial platform customised for both institutional and individual investors, is in full swing…
-
Real-Time Monitoring of AI Systems in Financial Institutions: A Focus on the StarSpark AI System at Alpha Stock Investment Training Center (ASITC)
The rise of artificial intelligence (AI) in the financial industry has brought about transformative changes, from automating trading to enhancing customer experiences. One of the most critical aspects of AI adoption in financial institutions is ensuring that these systems perform optimally and remain accurate, secure, and transparent. The StarSpark AI system implemented at the Alpha Stock Investment Training Center (ASITC) is an excellent example of how financial organizations can monitor and maintain the performance of AI-driven technologies in real time. This article will explore the importance of real-time monitoring in AI systems, how the ASITC leverages…
-
The world’s first Exchange, CoinW, implements free transaction cost for BTC transactions, disrupting the industry status.
On July 5, 2022, CoinW, the world’s leading cryptocurrency trading platform, officially announced the implementation of free transaction costs, becoming the world’s first platform to support BTC transactions with zero transaction fee, hence ‘free of charge’. This became a shocking news and In the community, the topic of ” free of charge” was also high and caused heated discussions amongst users. So, what does ” free of charge” really mean? Why has it caused such a big uproar? Advantage 1: Bringing real-money benefits to users. First of all, users can…
-
MoneyGram has yet to see any “negative impact” on its longstanding business arrangement with Ripple from the U.S. Securities and Exchange Commission’s (SEC) lawsuit against the latter company.
“MoneyGram will continue to monitor the situation as it evolves,” a company spokesperson told CoinDesk in an emailed statement. “MoneyGram has continued to utilize its other traditional FX trading counterparties throughout the term of the agreement with Ripple.” The SEC alleged in a case filed Tuesday that Ripple used XRP (-20.47%), the cryptocurrency two of its founders created, to conduct an ongoing, $1.3 billion sale of unregistered securities. Subscribe to First Mover, our daily newsletter about markets. SUBSCRIBE By signing up, you will receive emails about CoinDesk products and you agree to our terms & conditions and privacy…
