Take a breather

In May, global equity indices retreated from their highs of the previous month and trended sideways or negative. Only technology stocks were still in a jubilant mood. Otherwise, the confidence gained in April has given way to a wait-and-see attitude, as there are various issues that make market participants act more cautiously. In addition to the geopolitical issues that have been known for some time -- such as the Ukraine war or the tensions in Taiwan -- weaker than expected economic data are urging caution. In China in particular, the economic recovery slowed down in the course of the month and important leading economic indicators turned out worse than expected. The debt dispute in the USA has hardly left any mark on the markets. Too often in recent years, investors have had to watch this spectacle and this time, too, hardly anyone doubted that an agreement would be reached and that the new debt ceiling would be raised.

We remain true to our strategy with a focus on high-quality companies with low debt.