2025: not a high beta year

The more I look at the market, the more I think it is a good year to be hedged in general in 2025 or at least be out of higher beta names.

The high beta trade is long in the tooth, so I advised all (investor) friends to get rid of highly speculative names (that includes crypto, especially outside of bitcoin). I could be early, but those friends are sitting on super high profits now, so most of them raised cash 25-30%.

I am waiting for an extreme GEX reading to hedge with a 3-5% position via VIXY and rebalance it every 3 months.

I expect small cap value momentum to have a (relative!) good year.

I am still long 100% my small cap value momentum systems, though remember I am always hedged via the dollar (which worked great the last months), because my account is dollar denominated, and I live in Europe.

Book looks like this now (only small cap value momentum systems in the book):

My AI Big cap systems are almost entirely out of tech!

I will write about the above AI Factor Systems soon.

Best Regards
Andreas