Alpinum Investment Management AG Q1 2024 Investment Letter

Nikada Market pivot on inflation perception In 2023, global financial markets witnessed a significant surge in equities, with the S&P 500 (SP500, SPX) seeing a year-to-date increase of 22.4%, surpassing global bonds. Market sentiment pivoted favourably as the perception of inflation underwent a positive shift, mirroring the 2020 response to the Covid situation. The remedy this time is the alleviation of transient inflationary pressures and an economic slowdown, contributing to market stability. The normalisation process will lead to inflation rates, real interest rates and budgets that are historically more typical, resulting in valuations aligning closer to historical norms. Chart 1:…