OUR NETWORK INCLUDES ENTREPRENEURIAL FAMILIES AND RECOGNISED EXPERTS

Market Reflections 2nd Quarter 2024 - A Pleasant First Half

Das Family Office

Dear Clients, Friends and Partners of Das Family Office,

The first half of the year has been very pleasing for global equity investors. This can be easily recognized by the fact that the widely known indices of the MSCI and FTSE All World families are all recording double-digit returns by mid-year. In many cases, the returns are twice as high as the expected long-term risk premiums for equities, which are about 7-9% p.a. for large companies. Although there was a small correction in April, this was completely canceled out by the end of June.

The good performance of ‘large cap’ indices is due not least to the very good performance of the so-called ‘Magnificent 7’ (Alphabet, Apple, Amazon, Meta, Microsoft, Nvidia, Tesla) and especially the price explosion at Nvidia. This stock alone has made a significant contribution to the performance of the MSCI World, the FTSE All World, the MSCI World Quality Factor, the Nasdaq 100, and the S&P 500 Index. Nvidia’s share price performance was so strong that the performance of our high-return investment building blocks almost directly reflects whether Nvidia was included in them or not. I have rarely experienced such an extreme situation in more than 30 years in the financial markets; actually, only at the end of the 1990s, when we were able to observe the so-called Internet bubble.

In addition to the shares of Nvidia and the ‘Magnificent 7,’ we should mention the shares of Novo Nordisk and Eli Lilly, which have been equally great performers due to their successful weight management medicines. After such a great performance, none of these companies have room for earnings disappointments.

Their bloated valuations point to a need to rotate into neglected market segments.

U.S. and Global Small Caps as well as Healthcare & Biotech stocks may be areas to consider!

 

In addition, find our quarterly report 'Reflections' :

Please take a look at an abundance of information and specific details on how you can build a portfolio that works!



 

Don't let market volatility impress you, stay the course!

Yours Truly,

Mario Becker

Mario@dfo.sg


Founder and CEO of Das Family Office