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By Ariane KESREWANI and Cédric Le BERRE, Senior Investment Specialists, Union Bancaire Privée (UBP)
As 2023’s concentrated market rally is extending into 2024, equity investors are worried about a potential consolidation or pullback. Risks of disappointment caused by geopolitics and elections, interest rate moves or AI inadequacies are high. They could weigh on market sentiment after the accumulation of more than 30% returns since the end of 2022, more than making up for the -18% performance drawdown recorded in 2022 (MSCI AC World NR index in USD). Looking at the more balanced MSCI AC World Equally Weighted, its rolling two-year performance is still in the red, reflecting how narrow the market has been. Yet, over the longer term, that index delivers stronger...
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