Portfolio July 2023

US technology stocks have soared in recent weeks. By contrast, equity markets as a whole have trended sideways. The focus now is on the increasingly pronounced economic downturn and its impact on companies. Inflation rates are still too high, central banks remain hawkish.

The private sector looks to be both robust and resilient, with companies having largely been successful in passing on higher production costs. Nonetheless, caution is advised: the first European companies have issued profit warnings. An intriguing reporting season lies ahead. Key interest rates can be expected to remain high for the rest of the year – and the US central bank (Fed) could even raise them further. The picture is rather different in Switzerland. Inflation has come down, yet the SNB too looks set to increase interest rates once again.

So what does all this mean for the market environment and investors? You’ll find our assessment here.