Monthly report June 2024

Central banks and their interest rate decisions were at the centre of attention in June. While the ECB made its first interest rate cut since 2019 as expected, the Fed kept its key interest rate range unchanged. The robust US economy and continued inflationary pressure -- even though the last report showed a slight decline -- prompted Chairman Powell to take this step. He also indicated that only one interest rate cut is likely in 2024. The US stock markets were nevertheless optimistic and reached new highs over the course of the month. In contrast, European shares barely made any headway. This was partly due to French President Macron’s announcement of early parliamentary elections. This weighed on the euro, which weakened significantly against the Swiss franc. This in turn is likely to have been one of the reasons -- alongside persistently low inflation -- for the SNB to cut interest rates again by 25 basis points.

The performance of our fund portfolio was also mixed. At the same time, the large number of visits to the companies in which we are invested showed us that management confidence has increased in 2024. This also confirms the realisation that our proximity and the continuous, direct exchange with the decision- makers of these companies are important for our investments.