Monthly report

February 01, 2024 - 1 min read

 

In the latest edition of our monthly report:

US equities dominate the market

  • Outperformance has lasted since 2010;
  • The enormous market cap of little-known stocks; and
  • Managers are permanently underinvested in the USA.

 

Assessment of the economic situation
The US economy remains solid, although the normalization of its labor market is struggling to materialize. In Europe, the situation is stabilizing at a low level, but Germany remains the weak link. The US 10-year is stabilizing below 4%.

  • US economy holds up in Q4, thanks to consumption;
  • Cocoa prices double in 12 months; and
  • After December’s euphoria, the market calms down.

 

Financial markets during the month
Equity markets ended the month of January on a positive note overall, while Chinese indices fell back again. US bonds stabilize, while tensions in the Red Sea drive up sea freight costs.

  • Upside participation in the S&P 500 weakens;
  • US 10-year Treasury yield stabilizes below 4%.; and
  • Precious metals and currencies.

 

Comments on investment decisions
The first rate cuts are expected between March and June, whether from the Fed, the ECB or the SNB. The medium and long parts of the curve are still looking for an adequate valuation. A  gradual lengthening of duration is recommended. Equity markets are a little overbought, but to be accumulated on weakness.

  • Equities;
  • Bonds;
  • Precious metals, listed real estate (REIT); and
  • Currencies.

 

Performance summary

  • Equity performances, and
  • Performance of bonds, currencies and commodities.

 

Click here to read our monthly financial markets update report.

 

Disclaimer
This document is solely for your information and under no circumstances is it to be used or considered as an offer, or a solicitation of an offer, to buy or sell any investment or other specific product. All information and opinions contained herein has been compiled from sources believed to be reliable and in good faith, but no representation or warranty, express or implied, is made as to their accuracy or completeness. The analysis contained herein is based on numerous assumptions and different assumptions could result in materially different results. Past performance of an investment is no guarantee for its future performance. This document is provided solely for the information of professional investors who are expected to make their own investment decisions without undue reliance on its contents. This document may not be reproduced, distributed or published without prior authority of PLEION Investment Adviser Ltd.