This morning I have bought VEVE for your portfolio after it moved more than 3% below its recent high at the end of February.
We paid 9664 for VEVE, meaning that we will be looking to exit once it hits 9954 (3% above the purchase price).
The strategy we use for this trade is designed to take advantage of normal pullbacks in global equity markets. When prices fall a modest amount from recent highs, those dips are often followed by a gradual recovery as buyers return.
Although markets have been unsettled thanks to the latest Trump initiated mess, the behaviour of the market itself is more important than the headlines.
Here is my reasoning for applying your full PIP-VEVE allocation (where previously agreed):
1. The decline has been gradual, not sudden
The price has moved lower over roughly a week from the late-February high. This pace of decline is typical of a normal market pullback.
When markets begin deeper corrections, the first move lower is usually much sharper, often reaching the same level in just a few days. That is not what we are seeing here.
Instead, the pattern looks like a steady adjustment rather than a rapid loss of confidence.
2. The size of the move is meaningful but still normal
The fund has now fallen around 3 to 4% from its recent high.
In global equity markets this is the range where routine pullbacks often stabilise before recovering. The purpose of PIP-VEVE is specifically to take advantage of these kinds of temporary declines. Regardless of their cause.
3. Markets have absorbed the current mess
While things like Trump can influence short-term sentiment, markets usually incorporate that information very quickly.
Unless those events begin to affect the underlying economy or company earnings, price movements tend to settle back into normal trading patterns. At present, volatility remains within normal ranges.
4. The price behaviour does not resemble a deeper correction
When markets enter more serious declines, the pattern typically shows accelerating selling pressure, widening daily ranges, and repeated weak closes.
We are not seeing those characteristics here. The recent movement has been orderly rather than stressed.
5. The TCFP funds remain the primary driver of long-term returns
It is also important to remember that PIP-VEVE represents only a small part of your overall portfolio.
The majority of your investments remain in the TCFP funds we hold for the long term. These funds are globally diversified and are designed to navigate different market environments over time.
If markets were to become more volatile or fall further, those core holdings continue to do the heavy lifting within the portfolio. The PIP-VEVE trade simply takes advantage of shorter-term opportunities when markets temporarily drift away from their normal trend.