Investment

October General Markets Comments

by Pierre Mouton

October General Markets Comments

«Fade Out Lines» – The Avener Rework, 2014

Charts lines from the 12 to 18 post-covid months are gradually fading out, and it seems markets are coming back to earth after an incredible run on speculative and/or expensive assets from March 2020 to November 2021. These roller coaster capital markets make investors feel dizzy, at least a smidgen. Pirouetting from the downside to the upside, markets logically give rise to howls calling for a looming disaster, or, conversely, for the beginning of a new bull phase.

Whatever the trigger, excesses always end up badly; but as they deflate, opportunities arise, and it seems that October 2022 was a month of opportunities. At a time of crucial reports from the IT and Communication Services behemoths, one could have expected that the latter would dictate the overall market mood; in fact, they did not. Markets can do anything, and they proved again how tough it is to assess their reactions. Reports from the Big Boys were mostly disappointing, but this did not prevent Global Equities from posting spectacular returns, as shown by the +7.11% performance of the MSCI World in October.

Not only did the MSCI World perform well, but all other major indices also rose significantly (S&P 500 +7.99%, MSCI Europe +6.15%, Topix +5.09%, Nasdaq +3.96%), barring the MSCI Emerging Markets, which abandoned 3.15%, penalized by the Chinese market essentially (-7.99%).

With interest rates rising again (+22 bps and +3 bps for the US and the German 10 year respectively), Value fared much better than Growth (+9.58% for Global Value versus +4.56% for Global Growth), and Gold lost ground again (-1.63%); the shiny stuff, very symbolically, now lags the Dow Jones Industrial year to date (-10.70% vs -9.9%), quite a surprise in a year marked by rising inflation and war. Credit had a very good month, the Itraxx Crossover gained 3.65%, and Oil finally broke a 4-month losing streak by adding 8.9%.

 

 

 

 

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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October General Market Comments

by Pierre Mouton
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Antonio Mira
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Antonio Mira joined NS Partners in 2006 as Group Chief Financial Officer. He heads the corporate functions and is involved in coordinating and implementing the decisions of the Executive Committee.
An experienced bank auditor, Antonio started his career in 1995 with Arthur Andersen, where he worked for some 7 years before joining Ernst & Young in 2002 as a Senior Manager.
Antonio is a Swiss chartered accountant and a Business graduate of Lausanne University (HEC).

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Sébastien Poiret joined NS Partners in 2008 and manages funds of hedge funds and private client mandates. He also oversees the development of the Group’s offices in Mauritius.

Prior to joining NS Partners, he served as a Trader, Head of Manager research and Portfolio Manager in the USA and Switzerland for a single hedge fund (1998-2004) and for Optimal (2004-2008), Grupo Santander’s fund-of-hedge funds operations.

Sébastien holds a Bachelor’s degree in Corporate Finance from the ESPEME Business School (EDHEC Group) and an MBA in Finance and Economics from the Institute of Business Administration, both in Nice.

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He started his financial career in 2005 as Head of Quantitative Analysis for a Swiss Family Office, selecting funds and managing portfolio allocation. In 2008, he switched to the alternative world and joined Peak Partners as hedge funds analyst.
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