After stock and bond prices rose unexpectedly strong in the first half of the year, quite a few storm clouds gathered in the third quarter.
The months of August and September presented an echo of the financial market weakness of 2022: interest rates rising especially at the long end, falling prices of technology and growth stocks paired with stability in ‚value stocks‘, weakness in China and gains in India.
However, the recorded losses were not nearly as high as last year. The broad-based equity indices of the MSCI and FTSE Russel families continue to show solid gains for 2023. But indices tracking the shares of small and medium-sized companies have roughly halved their returns since mid-year.
The weakness of bonds with medium to long-term maturities is most unpleasant. Almost all the gains of the first half of the year have melted away.
Luckily, we're now entering a traditionally more quiet market phase...
We've just released our quarterly report 'Reflections' below.