US stocks, on the whole, are doing relatively well despite persistent worries over rising inflation. That said, as the country’s vaccination continued to progress rapidly — more than half of its population have now received one dose while over 40% have been fully vaccinated — stocks that benefit most from economic reopening are faring better than high-growth tech stocks. As we have discussed before, the latter group of stocks will see a bigger negative impact from rising interest rates — if higher-than-expected inflation forces the US Federal Reserve to tighten sooner — as more of their earnings are in the future. As a result, we saw the Dow Jones Industrial Average, up 1.9% in May 2021, outperforming the techheavy Nasdaq Composite, which fell 1.5%. The broader Standard & Poor’s 500 index was up 0.5% over the same period.

After giving consideration to the prevailing market sentiment, we made several switches in the Global Portfolio — while staying fully invested. We disposed of all our holdings in Okta, ViacomCBS and Geely Automobile Holdings. The proceeds were reinvested into Amazon.com, General Motors Co and The Walt Disney Co.

Okta’s shares have been very volatile, rising as high as US$294 and falling as low as US$199 year to date. The most recent selldown came after the company released its earnings results for 1Q2021 — despite its beating market expectations.

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