Monthly report

November 07, 2023 - 1 min read

 

In this latest edition of our monthly report:

The loneliness of contrary opinion

  • It’s hard to stay on course;
  • The pressure of being judged on a calendar-year basis; and
  • Remain vigilant in the face of great “certain􀆟es”.

 

Assessment of the economic situation
No recession (yet) in sight in the US, while in Europe it seems inevitable. Energy prices up sharply, as OPEC’s reduced quotas (finally) take effect. The US 10-year Treasury yield is back to 2007 levels.

  • US economy booms in Q3, despite the Fed;
  • Oil unaffected by Middle East tensions; and
  • The market (s􀆟ll) fears the Fed, not the ECB.

 

Financial markets during the month
All equity markets ended October down, while US bond yields con􀆟nued to rise. Tensions in the Middle East dominate the news, and gold rallies strongly.

  • Third consecutive month of declines for equi􀆟es;
  • US 10-year Treasury yield reaches 5%.; and
  • Precious metals and currencies.

 

Comments on investment decisions
The monetary 􀆟ghtening cycle is nearing its end, but easing is not yet on the cards. The Middle East conflict is making markets nervous, while long bond yields are near record highs. Equity markets are in a phase of risk aversion, but on the other hand seem ripe for a rebound.

  • 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 weekly 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 SA.