| In August, U.S. equities rebounded from July’s pullback, with major indices finishing higher. The S&P 500 gained over 2%, with Nasdaq and broader tech complex leading the advance. Inflation Pressures & Rising Yields: Continued conflict in the Middle East drove crude oil prices higher. This, coupled with heavy government borrowing and massive debt financing for AI data center buildouts, reignited inflation concerns and pushed bond yields up, prompting markets to price in potential Federal Reserve rate hikes later this year. Tech Rebound: As we anticipated last month, tech stocks staged a sharp oversold bounce in early August. Semiconductors and hyperscalers led the initial charge before consolidating in the second half of the month, while enterprise software continued to rise throughout the entire month. Energy & Software Outperformed: Energy stocks continued to rally on rising crude oil prices. As we correctly anticipated last month, software stocks rebounded strongly in August, reversing their deep year-to-date underperformance tied to the “AI is eating software” narrative. The rally was further fueled by strong quarterly reports from marquee names like Salesforce, alongside a capital rotation away from capex-heavy AI infrastructure amid growing negative sentiment around data center builds. Our Portfolio Performance Our portfolio performed very well in August, driven by our strategic overweights in the Software and Energy sectors. The largest individual contributors to portfolio performance were Palantir Technologies and Salesforce. (A complete list of all portfolio holdings and their respective contributions to overall performance is available upon request.) September 2026 Market Outlook September is typically a volatile month: As rising interest rates threaten to cool broader economic activity, we are positioning our portfolio with a barbell approach—pairing secular growth with defensive resilience by maintaining strategic overweights in Technology, Healthcare, and Energy. Tech can outperform: We believe semiconductor stocks are relatively inexpensive given their rapid earnings growth and price corrections in recent months. Meanwhile, many hyperscalers and software stocks remain attractively valued relative to their growth rates. As always, our priority remains the ruthless preservation and compounding of your capital. Thank you for your continued trust and partnership. |
| Helen Zha Managing Member EnvisionX Capital, LLC helen@envisionxcapitalllc.com Important Disclosure: For informational purposes only. This is not investment advice or a recommendation to buy or sell any security. Market conditions can change quickly, and past performance does not guarantee future results. |
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