Market Update August 2023

09/13/2023 –

Interesting developments have taken place in the financial markets over the past two months. One particularly notable change has been the rise in interest rates in the U.S., with yields on ten-year Treasuries rising over 4%. This offers alternative investment opportunities beside the stock market. Quarterly corporate results were mixed, with most beating expectations, but year-over-year profits fell about 5%, indicating a profit recession. Interestingly, this did not lead to expected market corrections. In the coming weeks, we expect challenging markets as long-term interest rates rise. A sharp correction is not necessarily expected, but a period of volatility is likely to come. The few (tech-)stocks that led the markets rise until July have calmed down and are now in a consolidation phase. Value stocks still show weakness, but we continue to see nice profits and dividend payments.

Click here to watch our CEO, Steffen Bauke’s market update for June 2023 on YouTube.

 

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