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Investment Report

La hausse amène la hausse

“La hausse amène la hausse”. The old stock exchange adage has not lost any of its validity. True, equities have been rising for quite some time now, but more recently it appears that they have risen mostly because they were rising. The bull-market is feeding upon itself. There are plenty of reasons for and against the equity markets’ current healthy shape. Optimists point to the liquidity glut provided by central banks, the low interest rates that make alternatives to equities appear unattractive, and the recovery of the economy, a light spring breeze that most recently has even reached the Eurozone. The pessimists invoke the high fundamental valuation of equities, the numerous geopolitical uncertainties, as well as the still unresolved indebtedness of many countries, as their counterarguments.