Monthly reporting December 2024

December was dominated by the central banks and for once there was no year-end rally! After a positive start to the month with many indices once again setting new records, the global stock markets cooled off as the month progressed. The Swiss National Bank kicked off the interest rate cuts, surprising investors with a reduction of 50 basis points. The reason given was the continuing decline in inflation. The US Federal Reserve then caused sharp falls with its interest rate cut and outlook for 2025, with the 25 basis point reduction causing less uncertainty than the outlook. By the end of 2025, only two interest rate cuts are expected instead of the previous three.

The positioning of our fund remains in line with the current market environment and we are prepared for all market developments. We remain positive on quality stocks, but are fully aware of the geopolitical risks in the world and the economic challenges in some economies.