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In their latest podcast, UBP’s Co-Heads of Swiss and Global Equity, Martin Moeller and Eleanor Taylor Jolidon, provide us with their insights into the equity space, and in particular global equities, as the year draws to a close and we move into 2025.

You might have heard about our Swiss & Global Equity team’s investment approach, which revolves around cash-flow return on investments (known as CFROI – Source: UBS HOLT) and the selection of companies with high and stable CFROI only for some of its portfolios. This is a measure that gives an indication of a company’s ability to create value.

As 2023’s concentrated market rally is extending into 2024, equity investors are worried about a potential consolidation or pullback.

We don’t expect central banks to cut rates before the second half of 2024.

Electrification, weight-loss drugs, AI, digitalisation, cryptocurrencies, ESG darlings, 3D printing and the metaverse are some of the various themes that have been moving global markets recently. However, constantly shifting business environments and rapid technological advances can sometimes lead to a bubble-bursting situation for some themes and their major players.

With a rebound in EPS growth expected for 2024, though with disparities between market segments, and with interest rates and inflation still at elevated levels, active management is key.

Research has shown that 30 stocks is enough for a portfolio to efficiently diversify risks – and this without even taking into account the added benefits of active stock selection.

Bilan - (28.06.2023) - After a disappointing year for tech investors in 2022 – with the Nasdaq 100 falling 33% – some observers called time on a sector that had totally dominated the last decade.

UBP’s experts share observations on a volatile year for global equity markets in a new podcast episode.

High inflation and aggressive rate hikes by central banks have significantly destabilised equity markets, with the Russia–Ukraine war adding further stress. In this challenging environment, the disciplined search for value-creating companies in all market conditions remains key.

The ability to keep generating cash flow above cost of capital even during rough patches is a sign of stability in a company, says UBP’s Martin Moeller.