A strong countermovement

A significant easing in government bond yields boosted the markets in November and the long-awaited countermovement has materialized. Weaker-than-expected industrial data and a cooling US labor market at the beginning of the month have allowed optimism to return. The publication of the US inflation figures for October gave the stock markets a further strong boost. Various stock market indices were again trading close to their highs for the year. Many market participants are still betting on a “soft landing” for the US economy and a recession in Europe. We expect similar scenarios and therefore assume that the central banks will continue to tighten interest rates for the time being.

Our fund made significant gains in the past month and has rewarded us for our patience and foresight. We continue to focus on quality stocks with low levels of debt and are prepared for all scenarios.