Navigating Investment Strategies: Analyzing the Q3 and Q4 2022 13F Holders

As an investor, it's essential to keep track of market movements and regularly adjust our portfolios to ensure maximum returns. One of the best ways to gain insight into the investment strategies of large firms is through the 13F filing, which is required by the SEC. DeDora Capital, Inc. recently released its Q3 and Q4 2022 13F filings, revealing significant changes in its holdings. In this article, we will analyze the data to interpret what it means for investors and the market as a whole.

Vanguard Funds Dominate the Top 5 Holdings

At the start of October, Vanguard Funds remained the top holding by value for DeDora Capital, increasing by 19.2% in shares and 19.1% in value from Q3 to Q4. The top-performing fund was VWAHX (Vanguard High Yield Corporate Bond Fund), with an increase of 56.2% in value. At number five was VB, another Vanguard fund for small-cap stocks, recording a slight increase of 9.7% in value.

Big Tech's Mixed Results

Apple (AAPL), Facebook (FB), and Amazon (AMZN) all experienced losses in Q4, with Apple being the most significant drop at 6.7%. Microsoft (MSFT), on the other hand, incurred only a minor dip of 3.7%. Amazon's 25.4% decrease came as a surprise, as several Wall Street analysts forecasted a favorable holiday shopping season for the e-commerce giant. These mixed results suggest that investors should exercise caution when investing in tech stocks, particularly concerning the regulatory and macroeconomic environment that could lead to uncertainties in the short-term.

The Rise of REITs and Mergers

Real Estate Investment Trusts (REITs) have surged in popularity since the pandemic began, thanks to the shift in consumer behavior towards a work-from-home model. In 2021, REITs have outpaced the S&P 500 by a significant margin, and investors have taken note of this trend. DeDora Capital, Inc. appears to have also recognized this opportunity, as it took a position in Digital Realty Trust (DLR) in Q3 and surged to having its fourth-highest Q4 holdings. Mergers & acquisitions have been commonplace in the tech sector in recent years, with five significant deals occurring in 2021 alone. The trend is evident in the Q4 holdings, where Meta Platforms, Inc (META) saw a substantial decrease, offset by an increase for Accenture PLC (ACN), indicating the company's increased appetite for M&A deals.

Gold Takes a Tumble

As for DeDora Capital's commodity holdings, it witnessed a decline in gold (GLD), dropping by 9.6% in Q4. Gold's inverse correlation with the dollar has been evident in the past months, with investors turning to gold and other safe-haven assets during times of economic uncertainty. However, DeDora Capital's move in Q4 could indicate that it is taking a more optimistic view of the market outlook, that gold's shine might be on its way out as interest rates rise in the upcoming year.

The Takeaway

Overall, DeDora Capital's Q3-Q4 forms highlight the importance of keeping a diversified portfolio that includes a mix of stocks, bonds, and other investment vehicles. The changes in DeDora's holdings suggest a few potential trends, such as investors' cautious approach to tech stocks, their interest in REITs, and M&A, and a more optimistic outlook for the market overall. Though DeDora Capital's 13F filings do not represent the entire investment landscape, they serve as a useful tool for interpreting market trends and making informed investment decisions.