A fantastic start

Global stock markets got off to a flying start in 2023. The main reason for this was the further decline in inflation data. In particular, the renewed drop in annual inflation in the USA in December was truly celebrated by investors. It was the sixth decline in a row and thus further strengthened the hopes of many investors for a less restrictive monetary policy by the US Federal Reserve. The earlier-than-expected end of the zero-covid policy in China and the prospect of a rapid recovery of the Chinese economy also gave rise to confidence. In addition, the mild winter in Europe so far is leading to an easing in energy supplies and a feared shortage of energy sources is hardly an issue any more.

Our fund also got off to a fantastic start in the new year and was able to benefit fully from this confidence on the markets. Our decision to increase positions in cyclical stocks in the fourth quarter of last year was absolutely right. At the same time, however, we know that trees do not grow to the sky and therefore we have taken profits on some positions in the last few days and slightly increased our hedges.