Easing tensions in the Middle East are providing relief for energy prices and curbing inflation. We are raising the equity allocation and increasing our holdings of Swiss stocks. Comparatively high costs have prompted us to hedge the US dollar slightly less than before. We remain cautious when it comes to bond investments.

The blockade of the Strait of Hormuz continues. The conflict with Iran is dragging on. The result is growing worries about growth. Nevertheless, equity investments retain a high weighting in the portfolio – even on a tactical basis. We see opportunities in US equities and Swiss yield stocks. What matters is being selective.

The events of the last 12 months have once again brought it home to investors that a broadly diversified portfolio offers good protection in times of political uncertainty and general market turbulence. Our “Review & outlook” publication provides you with in-depth information on our assessments of possible developments over the coming year.

The third quarter of 2023 was characterised by turbulence of varying kinds. Further rises in key interest rates weighed on bond investments and the likelihood of an economic downturn acted as a drag on equity prices, while at the start of October the terror attacks in Israel dragged geopolitics back to centre stage.