[2023 Halftime Show] Best Performing Funds and Their Secret Stocks

Can they keep it up for the rest of the year? Picks from the Editor SPONSORED (Newsletter Continues Below) Sponsored [This Could Become Your Favorite Stock In A Recession]( Financial experts are split on the recession. Some deny, some say it’s already started, and some are giving new silly names like a “rolling recession” to try to make sense of it. The fact is much of the market believes a big recession is still coming...[Get the FULL Report Here]( By clicking link you are subscribing to The Investor Newsletter Daily Newsletter and may receive up to 2 additional free bonus subscriptions. Unsubscribing is easy. [Privacy Policy/Disclosures]( Stock Market High Jump: The Winners of 2023's First Half  Hi Traders,  Just imagine you're standing at the edge of a diving board. You look down and you see the shimmering pool of the stock market in the first half of 2023.  As you take the plunge, it's almost like you've been transported back to 2019. The thrill is back in the air, and you can feel the rush as you experience the best first half the S&P 500 has had since 2019, boasting a leap of 15.9%.  The MSCI World Index is no slouch either, throwing itself into the mix with a rise of over 12%.  The first half of 2023 has been an intriguing mix of surprises and flips. If 2022 was a vanilla sundae, then 2023 has come bearing rainbow sprinkles.  Bryan Cheung from Morningstar articulates it perfectly when he says that 2023 was a mirror image of 2022, with the underachievers emerging as the overachievers and vice versa. It's like those swanky masquerade balls where everyone's true identities are only revealed at midnight.  Information technology has been the belle of the ball, delivering a sizzling rally of 30.67% in the first half, as per Julius Baer.  Not too far behind, we have the communication sector strutting its stuff with a 25.9% increase, followed by consumer cyclicals rising by 16.15%.  It seems like the ‘magnificent seven’ mega-cap tech stocks have had their fair share of the limelight. A bit like the Avengers, if you ask me.  Other AI-themed stocks also basked in the glow of this enthusiasm. This is reflective in the top-performing Morningstar categories, which include U.S. large-cap growth equity, technology sector equity, and Taiwan equity.  Hold on to your glasses, because we're now moving on to the biggest potential upside.  In a twist no one saw coming, U.S.-listed shares of the Chinese tech behemoth, Alibaba, led the pack with a near 62% potential upside.  Talk about surprising!  Hot on Alibaba’s heels is Argentine e-commerce titan, MercadoLibre, promising the next highest potential upside at 33%.  Now, if you thought Bryan Cheung was all about the thrills, think again. Despite the stellar performance, he's been like that wise old owl, advising us to not get too carried away.  He points out that rather than betting on a bull or a bear market – which are as predictable as next year’s weather – investors should be strategizing their portfolios based on current valuations.  His advice? Re-balance those portfolios from the now expensive equities – like tech, and shift into more attractively valued areas such as value-oriented stocks, Asia, and emerging markets.  It's a bit like swapping out those worn-out tires before embarking on a road trip.  He also threw in a word about fixed-income assets. According to him, they're in a better position today than two years ago to hedge against downside risks in our portfolios. Now, that's something worth mulling over!  And that’s the rundown on the first half of 2023. Who knows what the second half has in store for us?  But no matter what happens, keep your eyes on the prize, and remember to stay balanced, not dazzled.  Keep on keeping up!  John @ Traders on Trend  (In the next article: The Fed just came up with some new market metric, what could be the implications? Find out below! 👇) Sponsored [Your Money Under Threat: Don't Let History Repeat!]( From Brazil in 1990, Cyprus in 2013, to Canada in 2022, governments have frozen bank accounts when least expected. Now, under the guise of Federal Reserve System Docket No. OP-1670, the Fed has a plan that could take tracking to a whole new level. From your account balance to every transaction, nothing is off-limits! [Learn how to keep your finances secure here.]( [Privacy Policy/Disclosures]( Check the Free Presentation Today ☝ SPONSORED The Fed's New Financial Conditions Index: A Plot Twist for Investors?  As it turns out, the Fed has recently come out with a paper that might just ruffle a few feathers among investors and economists.  Now, this isn't your typical page-turner with a plot twist, but in the realm of economics, it might just be the equivalent.  On June 30th, they released a paper titled “A New Index to Measure U.S. Financial Conditions."  This fresh-out-of-the-oven index is set to help us better understand the broader financial conditions and how they connect to future economic growth.  The authors have proclaimed it to be "broadly consistent" with the Federal Reserve Board's economic model.  Now, why is this such a big deal, you might wonder? Well, economists Krishna Guha and Marco Casiraghi at Evercore ISI have picked up on something fascinating.  The new index indicates that financial conditions are tighter than previously thought - and this isn't just based on the metrics produced by Goldman Sachs, Bloomberg, or some regional Fed banks.  In fact, these conditions remain the tightest they have been since the memorable (or forgettable, depending on how you see it) Financial Crisis of 2008.  The term "financial conditions" has always been one of those vaguely defined concepts, something like trying to define what makes a good cup of coffee.  It encompasses asset prices, interest rates, and all those other elements that can sway the real economy. As you can imagine, measuring these conditions can be a daunting task, which is what makes this new index such a big deal.  (article continues below) Sponsored [Protect Your Money: The Fed’s New Tracking Plan!]( In the past, we've seen governments freeze bank accounts - Brazil in 1990, Cyprus in 2013, and even Canada in 2022. Now, the U.S Federal Reserve is crafting an even more invasive plan, Federal Reserve System Docket No. OP-1670, aiming not just at your account balance but every check, withdrawal, and transaction you make. Are you ready?[Click here to prepare your financial fortress now.]( [Privacy Policy/Disclosures]( SPONSORED  🔼 Pay attention, this is worth your time! ☝  (article continues)  Earlier this year, investors were left scratching their heads when Fed Chair Jerome Powell noted that financial conditions had become significantly tighter over the past year.  The ambiguity left investors more confused than a chameleon in a bag of Skittles. There were speculations that the rallying stock market would prompt more aggressive Fed interest hikes.  Nevertheless, as we've seen, U.S. stocks have continued their upward march in 2023.  The technology sector, in particular, has been strutting like a peacock with the Nasdaq Composite jumping over 30%. The S&P 500 hasn't been too far behind with a rise of about 16%.  What this paper confirms, according to Guha and Casiraghi, is that the Fed's understanding of financial conditions is fundamentally different from widely available financial conditions indexes.  They put more emphasis on a variety of interest rates and give less weight to the stock market level than, say, the Goldman Sachs index.  Furthermore, the Fed seems to focus on the delayed effects of earlier financial conditions on future activity, as well as the impact of current financial conditions on upcoming activity.  According to Guha and Casiraghi, the fade-out of fiscal and monetary stimulus from ultra-easy conditions in 2021, coupled with the continued impact from the Fed's swift monetary tightening in 2022, should continue to influence growth.  So, what's the takeaway here?  The Fed is expected to be relatively tolerant of stock-market gains that have a moderate impact on the new index and future activity outlook.  In simple terms, they probably won't push back against a stock market rally, unless it turns into a full-blown parade, contrary to popular fears.  Disclaimer:  The material in this document is for informational purposes based on our proprietary research. It is not an offering, specific recommendation, or a solicitation of an offer to buy or sell any securities mentioned or discussed herein.  Any performance results discussed herein represent past performance, are not a guarantee of future performance, and are not indicative of any specific investment.  Due to the timing of information presented, any investment performance reflected within this document may be adjusted after the publication and distribution of this material. There can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this communication will be profitable, be equal to any corresponding indicated historical performance levels or be suitable for your portfolio.  Any investment results set forth in this document are not net of expenses and execution costs, nor do they account for other relevant trading or investment fees. 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