Monthly reporting August 2024

August started with a tremor on the global stock markets. Following weak labour market figures in the USA and a surprising cut in the Bank of Japan’s key interest rate, investors switched to ‘risk-off mode’. The stronger yen caused the Japanese stock market to plummet. This had a strong signalling effect and caused turmoil around the globe. However, statements by the Japanese central bank that it would not raise interest rates any further for the time being and a further fall in inflation in the USA then led to a surprisingly rapid countermovement, which gathered momentum over the course of the month. This also followed statements by Fed Chairman Powell at the central bank symposium in Jackson Hole, according to which nothing stood in the way of a key interest rate cut in the USA in September.

Our fund was also unable to completely escape the lower prices at the beginning of the month, but then recovered quickly over the course of the month. Our broadly diversified portfolio with a focus on quality stocks, coupled with sensible hedging, proved to be the right recipe. We remain optimistic for the rest of the year, but are prepared for any events that may occur.