Portfolio September 2024

The leading economic indicators painted a chiaroscuro picture in August. The US central bank (Fed) remained unmoved and stuck to its restrictive monetary policy. This combination triggered quite a rollercoaster ride for stock markets. Our basis scenario is still unchanged: we remain overweight in equities.

Over the past few weeks, investors have realised that a broadly diversified portfolio provides good protection against market turbulence. Attractive current yields on bond coupons cushioned some of the losses from the equity market sell-off. The government bonds of developed economies and bonds denominated in Swiss francs were in high demand throughout August.

The environment remains fundamentally constructive for equities. The US elections and the Fed will set the tone over the coming months. How are things looking in Europe? Will our prioritisation of European equities continue? And how positive is the current reporting season for Swiss companies?

You can read our experts’ views on the current situation in the latest Portfolio.