The first half of 2024 delivered solid returns for equity investors in particular. For bond investments, rising interest rates were a mixed blessing. US technology stocks continued to dominate global equity markets.

The attention of the investment community is gradually turning to the US elections. The first TV debate confirmed existing expectations of the quality of the candidates. Away from the cameras, rates of inflation continue to develop constructively. Both equities and bonds have benefited from this development. Swiss investors have experienced something of a headwind given the stronger Swiss franc.

For much of the year, 2023 was characterised by a volatile investment environment. It was another challenging year for investors. Rising interest rates had a conflicting impact on bond investments. US technology stocks dominated global equity markets.

Investors have enjoyed pleasing returns over the last two months. Hopes of a soft landing for the economy, rapidly falling rates of inflation, and normalising capital market interest rates have provided a boost to almost all asset classes. The monetary policy stance of central banks confirmed this trend last week.

Our essentially positive expectations with regard to the first six months of 2023 were borne out. Mixed investment portfolios clawed back some of the losses of the previous year, with investors favouring equities, primarily European and US technology stocks.

UBS is acquiring Credit Suisse (CS) by means of a share swap. This takeover was made possible by the combined support of the Swiss government, the Swiss Financial Market Supervisory Authority (FINMA) and the Swiss National Bank (SNB). The financial markets have swallowed this sedative pill for now, but are likely to remain jittery over the coming weeks. Investors should nonetheless keep calm and remain invested.

The 2022 investment year was truly challenging for investors. Rising interest rates and falling equity prices dominated large parts of an extraordinarily difficult year. Developments around the world were shaped by high inflation – a knock-on effect from the pandemic, which was exacerbated further by the war in Ukraine.