Banks cause turbulence

The collapse of Silicon Valley Bank shook up the financial markets at the beginning of the month. Although the rapid intervention of the U.S. financial market regulator prevented worse in the short term, events in Switzerland subsequently spilled over. Credit Suisse, already in crisis, had to be taken over by rival UBS under the guidance of the Swiss National Bank and the financial market regulator. This brought about a calming of the situation. Meanwhile, the major central banks reaffirmed their fight against inflation and raised key interest rates further in the course of the month. Contrary to original plans, however, a lot of liquidity had to be pumped into the financial system again, which in the short term means a small step backwards in the fight against inflation.

Despite the turbulence, our fund was able to make further gains and the focus on shares of companies with low debt has once again proven to be correct. We remain prepared for all scenarios.