Monthly Report November 2024

Dear investors

Financial markets developed heterogeneously in November. While the MSCI World industrialized market index more than made up for its losses from the previous month with an increase of 4.6%, the emerging market index MSCI Emerging Markets fell by a further 3.6% (both in USD). The DAX rose by 2.9% (in EUR) and the SPI posted a slight decline of 0.3% due to the weak performance of Nestlé and Roche. Despite a 3.7% drop in gold prices, the broad CRB commodity index rose by 2.5% (both in USD) thanks to higher energy prices.

Weaker growth and central banks' interest rate policy

With weaker labor market data and continued weakness in the manufacturing sector, growth momentum in the USA has also recently slowed down somewhat. Accordingly, medium and long-term interest rates fell over the course of the month, leading to a slight recovery in bond prices. At its November meeting, the US Federal Reserve FED left key interest rates unchanged. For central bank meetings in December, the market expects further key interest rate cuts from the ECB and the SNB. Higher growth and the core inflation rate of 3.3% make an interest rate cut in December in the USA slightly less likely.

Successful performance of format systems

In November, all format investments rose and exceeded their benchmarks (World Bonds on Benchmark). Once again, Format Aktien Schweiz dividend stocks recorded the strongest increase in value at 2.8% (SPI: -0.2%) in a sideways market environment. The overview of returns since the beginning of the year is in the usual form in the supplement.

Political uncertainty under Trump

It is still largely unclear how many of Donald Trump's election promises will implement in his second term of office. Market participants are particularly concerned with import tariffs and other trade barriers. The market is currently receiving a positive response when moderate people are added to the new government team. Overall, it seems clear that political uncertainty has increased with the election of Donald Trump, increasing the likelihood of positive or negative surprises on the markets. In the medium and longer term, earnings development and the general outlook for companies remain the driving force on equity markets.

Best regards
Matthias Hug and Markus Lackner

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