Balancing a Tailored Profit Portfolio: The 3 Risk Profiles

As we near the end of 2024 it’s a perfect time to sit and reflect on the year that has been and also have clarity on proactively creating the year ahead. Think about the key lessons you have learned and how they will enable you to have a better outcome in the year ahead.

More importantly, think about the wins that you’ve had, whether that has been a sharpening of your approach, mind and results!

Realise that 2025 will bring exactly what you choose to focus your attention and time on, so be sure to protect those thoughts and feelings so you stay on the path that you desire.

Myself and the team at CCI are grateful that we have been a part of both your financial and personal growth this year and we look forward to working with you in the year ahead, helping you to unlock your true potential!

Much love to you and your family over this special period. Be sure to unplug from technology, charts, the distractions that life can throw our way and be fully present with the greatest gift that we have….

When we realise that we already have everything we desire and more and build from this abundant foundation, you can live a life of pure fulfilment from a place of alignment. The glass is always half full….if you choose it to be.

Here’s to a MASSIVE 2025! Play all out and receive all out results. 

Before we get into the portfolio breakdown, as always, no strategy is permanent. I just wanted to point out some upcoming short term volatility that is expected. Don’t let this cloud your judgement of the next 6-12 months likely strong performance, but just be mindful.

The 2 key things that I am aware of:

1: Based on the commentary after the last rate cut from Jerome Powell, Chair of the Federal Reserve in the US, where they made a decision to reduce the interest rates by another 0.25% from 4.5% to 4.25%, he went on to address the ongoing concern with increasing inflation levels. He has continued to focus on a 2% target which they started to progress towards and now it continues to blow out.

Now the next inflation reading is on 15th January which will greatly impact the decision for the FED to keep rates steady or further reduce them. There was an anticipated 4 cuts coming in 2025, which has now been adjusted with a more hawkish expectation of only 2. The current inflation levels are at 2.7% and the forecast for the January reading is 2.3%, which would be massive progress.

This will likely change the probabilities of a further cut at the end of January, however the current statistics clearly demonstrate the expectations of staying at the current levels.

In simple terms what does this all mean….

Well, if inflation numbers come in below the 2.3% reading, the market will LOVE it and likely perform well, with an increasing expectation of a month end cut, helping to stimulate the economy.

If we come in on par, I suspect the progress will be well received, but expect the typical V shape recovery pattern around this time.

If we come in above, it will likely lead to a few weeks of downside. Great buying opportunities.

2: Trump's inauguration takes place on 20th January… Making the 60th US Presidential inauguration.

I suspect this will lead to volatility coming into the event. Sammy is our macro wiz and will share more commentary on this in the forthcoming releases as we close in on the event.

What does this all mean for your strategy?

Well, like anything, there isn’t one size fits all. Lower risk investors will be happy to reduce down their holdings into the event and wait for clarity. I wouldn’t be taking too much off the table as we are still in bull market conditions, but sitting some in a stable coin like USDT or local currency is wise. The USD is king at the minute, so USDT is a wiser choice.

Higher risk investors may choose to be more aggressive through this period finding opportunity in the volatility. Front running this event, I should imagine we see some downside as we get closer, so either trading from BTC into more speculative alts that see more aggressive pullbacks or moving in and out of USDT is a smart play…. But you can obviously take both paths of BTC and USDT pairing, which is what I will be doing.

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