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Market Reflections 3rd Quarter 2024 - Don't let volatility impress you - Stay the course!

Das Family Office

Dear Clients, Friends and Partners of Das Family Office,

 

 

The third quarter, notorious for its high volatility, is now behind us. In fact, the crash in Japan on August 5th was accompanied by historically high levels of more than 60 in the so-called VIX index, which measures the volatility of the S&P 500. An average volatility reading would be between 10 and 20, whilst elevated readings would stop around 40. Levels of 60 and above were only seen during the Covid market meltdown. Investors impressed by these fluctuations will be surprised to realize that at the end of the quarter, despite a crash and all the noise, there were ultimately very pleasing gains to report. Based on the MSCI AC World Index, which comprises all major global stock markets, there was a rise of almost 6% in USD.

 

A decision to exit the stock market in May (sell in May, go away...) would therefore have been a big mistake! Anyone who pursues a coherent strategy and, like the clients of Das Family Office PTE. LTD., has a well-constructed portfolio, should therefore stay the course and ignore all market spasms. The most important dates of the quarter were probably the 7th of July and the 5th of August, as well as the 18th and 24th of September. This was because on the 7th of July, sustained lower inflation data was reported in the United States, which significantly stimulated global bond markets. On the 5th of August, there was a quasi-historic equity crash in Japan, which also led to distortions in world equity markets. On the 18th September, the US Federal Reserve lowered its key interest rates by 0.50%, which was very well received by financial markets. Finally, the Chinese central bank and various ministries announced concerted measures on the 24th of September to stabilize the Chinese stock markets, which led to an unexpected ‘price explosion’.

 

We've now also finalised our quarterly video update, which summarizes the current situation.

 

In addition, find our quarterly report 'Reflections <https://dfo.us1.list-manage.com/track/click?u=5be773f57bdd5e748de8653df&id=76f9fa1a5f&e=5818f48fe7> ' :

 

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!

 

<https://dfo.us1.list-manage.com/track/click?u=5be773f57bdd5e748de8653df&id=d67938d6b8&e=5818f48fe7>         

Financial Reflections on the 3rd Quarter of 2024             

Yours Truly,

 

Mario Becker