07/04/2023 –

FOMO – Fear of Missing Out, that is how you can describe it when you have to buy into rising prices because you missed the rally in tech stocks. Much has been talked, reported and written about ChatGPT and AI in every conceivable channel. The hype has driven valuations to new heights, especially for said tech stocks. The market value of Apple exceeded the 3 trillion mark at the end of June and Nvidia has a P/E ratio of over 200. Whether these valuations can be justified or not remains to be seen. However, one thing is clear: anyone who has not invested in the “big 7” is looking at a poor result in 2023 so far, which is more in line with the overall situation in the world. The positive index performance further distorts the picture as only about 10% of the stocks have accounted for over 90% of the index performance. The geo-political risks, stubborn inflation and high government debt are currently not reflected in the stock market prices of the aforementioned tech stocks. We now expect a more realistic development in the stock markets, especially for the second half of the year. Thanks to our investments, we were able to partially benefit from the speculation in these stocks. However, we will become more cautious for the second half of the year. As we know from the Dotcom Bubble, all good things must come to an end, especially when the overall world situation is more uncertain and unclear than it has been for decades.

Read more in the Strategy Update from the second quarter 2023.

For further information, we are at your disposal in personal conversations.