Hello Copiers, Followers, and eTorians. Happy New Year to everyone!
Here is my portfolio update for December 2025.
December was a consolidative month for the portfolio, with performance reflecting broader market dynamics and typical year-end positioning.
Performance Overview
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December: -1.95%
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2025 performance: +5.35%
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2024 Performance: +46.68%
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Risk Score: 5
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Active Copiers: 17
US Market Recap
US Market Recap-
S&P 500: –0.05%
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Dow Jones: +0.73%
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Nasdaq: -0.53%
During December, markets showed mixed performance. The US equity market remained largely flat, with the S&P 500 slightly negative (-0.05%), the Dow Jones posting a modest gain (+0.73%), and the Nasdaq underperforming (-0.53%) due to continued weakness in growth and technology stocks.
Key Market Drivers
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Federal Reserve policy: The Federal Reserve’s December 9–10 FOMC meeting resulted in a 25 basis point rate cut to 3.50%–3.75% on a divided 9–3 vote. Mixed labor data and cautious forward guidance helped support overall market stability, despite the nearly flat performance of the S&P 500 (-0.05%).
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Year-end profit taking: After a very strong 2024 and a generally positive 2025, many investors locked in gains during December. This created mild downward pressure, particularly on tech-heavy indices.
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Sector rotation: Defensive and value-oriented stocks outperformed growth, contributing to the performance divergence between the Dow Jones and the Nasdaq.
Cryptocurrency Market
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Bitcoin (BTC): -3.06%
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Ethereum (ETH): –0.67%
During December, crypto markets moved into a short-term consolidation phase. Lower liquidity during the holiday period reduced overall trading activity, which amplified price fluctuations and made markets more sensitive to short-term flows.
At the same time, cryptocurrencies continued to show a strong correlation with broader risk assets. As equity markets turned more cautious toward year-end, crypto prices reflected the same sentiment, reacting to shifts in macro expectations rather than crypto-specific fundamentals.
Portfolio Snapshot
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33% Stocks
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45% ETFs
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13% Crypto
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9% Cash
My risk score remains at 5, which I believe is well-suited for managing long-term stability while still aiming for solid returns.
Outlook for January
Historically, January tends to set the tone for the year, supported by renewed capital allocation and portfolio rebalancing after year-end profit taking. Entering January 2026, the US stock market is backed by a constructive macro backdrop, although short-term volatility may persist as investors reassess growth expectations and the timing of monetary policy changes.
Overall sentiment remains cautiously optimistic, with markets shifting focus away from 2025 consolidation and toward earnings visibility and policy direction for the year ahead.
Key Outlook Points
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US stocks: Fresh inflows and earnings focus
January often benefits from renewed institutional inflows and repositioning, with attention shifting toward 2026 earnings growth and forward guidance rather than past performance. -
US stocks: Fed expectations remain a key driver
Markets are likely to stay sensitive to signals regarding potential rate cuts in 2026, influencing sector rotation and short-term volatility, particularly in growth and technology stocks. -
Cryptocurrencies: Consolidation with macro dependency
Crypto markets are expected to remain in a consolidation phase, largely driven by broader risk sentiment and liquidity conditions, while maintaining a constructive long-term outlook.
My strategy remains unchanged: monitor markets daily, adjust positions strategically, and continue maximising returns while keeping a medium-risk profile.
Recommendations for Copiers
If you are considering copying my portfolio, here are a few tips to make the most of it:
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Invest a minimum of $2,000: This helps ensure proper diversification and better mirrors my portfolio structure.
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Focus on the long term: Keeping the copy open over time allows you to benefit from compounding and market recoveries.
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Starting smaller: You can begin with a lower amount and add funds later as your confidence grows.
Now is still an excellent time to start copying my portfolio, or to add more funds if you are already a copier.
Goals for 2026
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Outperform the S&P 500: Aim for another year of strong relative performance.
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Maintain a medium risk score: Balance risk and reward effectively.
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Achieve Champion Popular Investor status: Continue growing and strengthening our investment community.
Thank You
I would like to take this opportunity to sincerely thank all my copiers for your continued trust and support.
Get started now
If you haven’t started investing in my portfolio yet, now is a great time to join.
Simply create an eToro account using this link and visit my eToro profile to get started.
Warm regards,
Federica Montella