Dear Investors,
February was a good month for the AEX, with + 2.53%.
For February, the figures for the RVM systems were: RVM Strategy +1.01 %; RVM Retirement + 1.01 %.
With this, the systems set new all-time highs for the eighth month in a row.
THE MARKET IN FEBRUARY: HEFTY DECLINES
Although we were positive with the AEX over February, on a daily basis there were regularly very sharp lows and the course of prices was unsettled.
What also remained in play was the incredible undervaluation of Wolters Kluwer and, to a lesser extent, RelX. We continue to point to these data companies because they have been a rock for investors for so long, with their fixed subscriptions and loyal clientele, and for investors their predictable earnings trends.
Also notable was that Europe was stronger than the US. The USD has started a long-term downtrend against the Euro in our view, but in February the Euro was slightly weaker, which is good for economies in Euro countries.
MEANWHILE, THE ATTACK ON IRAN
It is already the month of March when we make this review, and the U.S. has continued the aggressive policy associated with the policies of the regime there, again, by bombing Iran. In principle, wars are not bad for stock markets, this has been proven very many times and a cynical reality. Of course, what matters is that world trade is not affected too much and that global energy supplies are not endangered. That is a problem in this case because Iran is a major oil and gas producer and the Strait of Hormuz is an important shipping route.
How this will all turn out we do not know. Our view is based on statistics and stock market trading, and what we can calculate for the various indices. Looking at that, we expect weakness in world markets on the one hand, but also recovery and also to new highs. We hold higher price targets for the AEX index in any case. If these are finally going to come in 2026 or 2027, it also means that there will be a solution to the conflict with Iran, because one cannot happen without the other. Stock markets can only be strong if world trade flourishes.
So much for this update.
Good luck with your investments!
Kind regards,
On behalf of Van Megen Systematic Trading,
Ruud van Megen
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