May 2025 Market Commentary

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Market Moves, Crypto Curves, and the Yin-Yang of Emotion

This month’s market update offers more than just a recap—it’s a front-row seat to the psychological chess match playing out across Wall Street. In the latest episode of Winning by Not Losing, the myStockDNA team, joined by CEO Sudhir Holla, dives deep into Darwin’s interpretation of the latest equity rally and what that means for risk-aware investors.

A Market Rally, But Not a Green Light

Despite a recent bounce in equities, Darwin’s models aren’t rushing to rejoin the party. Instead of chasing returns, Darwin is sending a cautious but calculated signal—allocating more to crypto as a risk-on play, while simultaneously increasing cash positions. It’s a split-brain move: reaching for asymmetric upside with one hand, while keeping the other firmly on the emergency brake. The message? Volatility might present opportunity, but the base case still leans defensive.

Meanwhile, the models have a common favorite: gold. Commodity ETFs remain a core holding across portfolios, hedging against what Darwin now interprets as a stagflationary recession—a rare and difficult economic climate where growth slows even as inflation stays sticky.

Fear, Greed, and the Emotional Risk Frontier

In the second half of the episode, Sudhir joins the show to unpack a timeless investing truth: markets run on emotion as much as data. Using relatable metaphors (including a nod to Inside Out), the conversation navigates how fear, greed, and even self-serving bias sabotage good strategies. Sudhir explains the “emotional risk frontier”—that moment where emotion overrides logic—and how Darwin is designed to step in before that line is crossed.

His advice to advisors? Frame the conversation around risk, not just returns. A client who understands that the goal is survival, not outperformance, is one who stays invested—and ultimately, wins by not losing.




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