Investment

September General Markets Comments

by Pierre Mouton

September General Markets Comments

« Another one bites the dust » – Queen, 1980

Well, another one, and many others? Equity markets already did, as well as fixed-income securities overall. September saw the British Pound on its knees, Gold breaking down, Oil recording its largest loss this year and Credit Suisse’s CDS rising to 2008 levels; FedEx and Nike had very bad days on the stock exchange, and Italy’s spread versus Germany widens by the day . On the front, the Russian army also bit the dust and is losing ground.

All asset classes suffered in September, with the continuous pressure exerted by long term interest rates, which, once again, rose significantly.

With hindsight, it looks like under the direction of conductor Jerome Powell, we’re gradually picking up where we left off, before February 2020 and the Covid outbreak, which led to all kinds of excesses and aberrations, triggered by the profligacy of Central Banks and Governments.

The S&P 500 lost no less than 9.3% in September, and the Nasdaq 10.6%; the MSCI Emerging Markets sunk 11.9% and now lags all major indices, barring the Topix, which is only down 7.9% year-to-date (but the Yen cratered by 25.8% versus the dollar!). Growth stood behind Value, once again, and lost 10.2% last month; the MSCI World Growth is down 32.8% this year, versus -20.1% for the MSCI World Value. This has to be put in the context of ever rising interest rates: the US 10-year yield added 64 bps (+57 bps for Germany) and is now 232 bps higher than the level prevailing at the beginning of 2022 (+229 bps for the Bund). Oil abandoned 11.2% and Gold 3%. Credit somewhat resisted, with the Itraxx Crossover “only” down 41 bps.

 

 

 

Past performance is not indicative of future results. The views, strategies and financial instruments described in this document may not be suitable for all investors. Opinions expressed are current opinions as of date(s) appearing in this material only. References to market or composite indices, benchmarks or other measures of relative market performance over a specified period of time are provided for your information only. NS PARTNERS SA provides no warranty and makes no representation of any kind whatsoever regarding the accuracy and completeness of any data, including financial market data or other financial instruments referred to in this general comment. This document does not constitute an offer or solicitation to any person in any jurisdiction in which such offer or solicitation is not authorized or to any person to whom it would be unlawful to make such offer or solicitation. Any reference in this document to specific securities and issuers are for illustrative purposes only, and should not be interpreted as recommendations to purchase or sell those securities. References in this document to investment funds that have not been registered with the FINMA cannot be distributed in or from Switzerland except to certain categories of eligible investors. Some of the entities of the NS Partners Group or its clients may hold a position in the financial instruments of any issuer discussed herein, or act as advisor to any such issuer. Additional information is available on request. © NS Partners Group

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