Monthly Report, July 2026
- 12 hours ago
- 3 min read
Editorial
Mag 7, not so magnificent anymore...
From FAANG to Mag 7.
From an "asset-light" to an "asset-heavy" model.
Even Nvidia is seeing doubts about its growth mount.
What consequences can we expect for the markets?
With a combined market capitalisation of more than 21,000 billion dollars, the Mag 7's cumulative performance of -2.1% in 2026 clearly weighed on the flagship U.S. S&P 500 index and the global stock index, despite the major surge in the semiconductor sector.
- by Kim Muller, CIO (Switzerland)
Assessment of the economic situation
U.S. economic activity is picking up, while in Europe, it is recovering (somewhat) after six months of slowdown. The sharp drop in oil prices has undoubtedly contributed to this upturn, but will it last?
Economic activity in Europe is finally picking up (a little).
Oil prices are (almost) back to their pre-conflict levels.
The new Fed Chair is making his mark.
What about the SNB's monetary policy?
At its monetary policy meeting on June 18, the Swiss National Bank (SNB) unsurprisingly kept its key interest rate at 0.0%. With domestic inflation remaining moderate and energy prices falling following an easing of tensions in the Middle East, the Swiss central bank had no reason to follow in the footsteps of its European counterpart, which had just raised its rate by 0.25%. It was "too good an opportunity to pass up" to widen the interest rate differential with the euro and ease some of the upward pressure on the franc against the euro.
Financial markets during the month
The semiconductor sector is "captivating" investors, but the range of sectors driving the rally is broadening, with healthcare, banking & insurance contributing to the gains. Long-term yields continue to ease, and gold is struggling.
European stocks are rebounding against their U.S. counterparts.
Long-term rates decrease continued, but is expected to stop.
Gold posted its worst quarter (-14.7%) in 13 years.
Our convictions
Comments on investment decisions
The sharp drop in oil prices is giving new momentum to non-U.S. stock markets. The Mag 7 are struggling, while semiconductors are soaring. Long-term yields are easing, but the Fed is driving up the dollar, while gold suffers.
Equities.
Bonds.
Precious metals and listed real estate (REITs).
Currencies.
Performance Summary
Equity.
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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