September weakest stock market month of the year

September more than lived up to its reputation as the weakest stock market month of the year. The continuing rise in inflation figures -- fueled by the sharp increase in energy prices -- and the active fight against it remained the key issue on the financial markets. While the historically largest interest rate increase by the European Central Bank (ECB) (+0.75%) was initially well received, market participants reacted all the more strongly to the high increase in the U.S. core inflation rate, resulting in major price distortions. A further interest rate hike by the U.S. Federal Reserve and, as a consequence, further rising yields caused the negative spiral on the markets to turn further in the course of the month. The voices of a global recession that could no longer be prevented became even louder. The geopolitical situation also came to a head, as evidenced by the damaged Nord Stream gas pipelines.

The price losses have been strong across all sectors and defensive stocks have also been severely punished. This holds potential for a counter-reaction, which we are preparing for.