Explore the latest trends and strategic insights in the March 2025 edition of the “Market Compass.”
This issue provides a comprehensive overview of the latest developments shaping global financial markets, from shifting investor sentiment to key political and economic events.
Highlights Include:
Germany’s Election Shakes Up Markets: The CDU/CSU emerged victorious in Germany’s parliamentary elections, securing around 28.5% of the vote. While investor optimism lifted the DAX by +3.8%, the new coalition will face challenges in implementing structural reforms amid an ongoing recession (-0.2% GDP growth in 2024).
Earnings Season: Good, But Not Enough: The Q4 2024 earnings season is wrapping up, and while corporate fundamentals remain strong, investors reacted harshly. Tech giants like Alphabet (-16.5%), Amazon (-10.7%), and Microsoft (-4.4%) faced significant declines, shifting market sentiment in favor of European (EuroStoxx 50 +11.6% YTD) and Chinese (Hang Seng +14.4% YTD) equities.
Trump’s Aggressive Trade Moves: The Biden administration’s cautious stance has given way to Trump’s aggressive policies. While initial tariff hikes on Mexico and Canada were delayed, new threats of 25% tariffs remain on the table. The US administration is also taking an increasingly active role in mediating the Ukraine-Russia conflict, adding to geopolitical uncertainty.
Dividends Matter More Than You Think: Over the long term, dividends contribute significantly to total stock market returns. Studies show that dividends have accounted for about one-third of US stock market gains since 1926, with an even greater impact in markets like Switzerland.
Market Outlook for 2025: While Europe and China show signs of recovery, US market sentiment remains cautious. We maintain a neutral stance on global equities, emphasizing high-quality bonds and well-diversified portfolios to navigate increasing volatility.
Ready to dive in? Download the full PDF of our March2025 Market Compass for a detailed analysis and forward-looking guidance on navigating today’s financial markets.
Do not hesitate to contact us with any questions about the topics discussed. We are happy to assist you with our expertise.
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