In the latest edition of our monthly report:
Editorial
Back to school, get your school bag ready!
Fill it with chips or with chips?;
Nvidia 2024 second quarter results;
Stock markets consolidate; and
Carry-trade settlement.
What consequences can we expect for the markets?
The US Federal Reserve is set to begin its first round of rate cuts on September 18. If it's in response to falling inflation, the future looks rosy. If it's to counter a slowdown in employment, it will be more complicated.
- by Benoît Derweal, our Head of Investment Solutions
Assessment of the economic situation
The US economy remains resilient thanks to consumer spending, while India continues to act as a huge growth engine. Geopolitical tensions are still very present.
US job market is temporarily improving;
Post-election, India is doing well; and
Are nuclear power plants green?.
What about Bitcoin?
During the turbulent period of early August, bitcoin correlated more with equities than with gold. Playing no role whatsoever as a safe-haven asset. After recovering in the second half of the month, it suffered another setback with the fall of Toncoin. No, it's not a French northern city. It's the Telegram token. The head of this messaging company is currently under arrest in a French prison. We can see that this “new” asset class is still in its learning stage.
Financial markets during the month
After the unwinding of the USD/Yen carry trade, the market resumed its normal pace, buoyed by corporate earnings and economic figures.
US equities maintain top spot;
Jackson Hole, the big bankers' meeting; and
Gold, oil and the USD.
Comments on investment decisions
It's been a hot summer, and the volatility index exceeded the heat record at the beginning of the month, only to normalize in the second half of August. September will see the televised debate between the US presidential candidates and the Fed's first rate cut.
Equities;
Bonds;
Precious metals, listed real estate (REIT); and
Currencies.
Performance summary
Equity performances, and
Performance of bonds, currencies and commodities.
Disclaimer
This document has been prepared using sources believed to be reliable but should not be assumed to be accurate or complete. The statements and opinions it incorporates were formed after careful consideration and may be subject to change without notice. The author and distributors of this document expressly disclaim any and all liability for inaccuracies it may contain and shall not be held liable for any damage that may result from any use of the information presented herein. Past performance is not indicative of future results. Values of an investment may fall as well as rise. This document is intended for information purposes only and should not be construed as a recommendation, an offer or the solicitation of an offer to buy or sell any investment products or services. The use of any information contained in this document shall be at the sole discretion and risk of the user. Prior to making any investment or financial decisions, an investor should seek individualized advice from his/her financial, legal and tax advisors that consider all of the particular facts and circumstances of an investor's own situation.
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