August was a strong month; September is off to a chilly start

August was a strong stock market month 

In August, global stock markets recovered thanks to surprisingly strong quarterly company results. This is clearly visible in the returns of the Peaks portfolios. They all rose in value: from +0.7% for Cautious to +3.1% for Adventurous. Compared with the start of this year, Cautious is now up +4.5% and Adventurous by as much as +16.4%.

Table 1: Net returns of Peaks portfolios

*On 22 November 2017

Important to know: These net returns reflect Peaks' portfolios in August 2026, all of 2026 and since the launch of Peaks, after deducting Peaks, fund, and transaction fees. The value of investments can fluctuate, and past performance is no guarantee of future results.

The above figures assume a portfolio value of €10,000 without any deposits or withdrawals. If you made deposits or withdrawals this month, your personal return may differ. Your return will also vary if you have invested less or more than €10,000 due to the monthly fees Peaks charges.

In terms of price fluctuations (volatility), August was relatively calm, just like July.

Table 2: Risk of Peaks portfolios

*On 22 November 2017

Important to know: This table shows the risk levels of the 4 Peaks portfolios over different time periods (last month, this year, and the average since Peaks launched). Risk, also known as volatility, reflects the variation in annualised returns and is measured using the standard deviation of daily net returns converted to an annual basis.

Central banks hit the brakes in response to high inflation

The economic figures in both Europe and the United States remain strong. Producer confidence is high, suggesting sustained economic growth. That said, consumers have become slightly more cautious, partly due to the ongoing geopolitical tensions in the Middle East and Eastern Europe. As a result, energy prices remain high, and this ultimately feeds through into the prices of goods and services. Consumers feel this in their wallets. 

To prevent inflation from getting out of hand, both the European Central Bank (ECB) and the US Federal Reserve (Fed) have raised interest rates. In Europe, the deposit rate has risen by 0.25% to 2.5%, and in the US from 3.75% to 4%.

These increases are also evident in the capital market, where longer-term loans are traded. The Dutch 10-year interest rate has risen from 3% at the start of this year to 3.6% now. In the US, the 10-year interest rate has even reached 5%. Higher interest rates make it more expensive for consumers and businesses to borrow money. This slows down economic growth and, consequently, inflation. 

September kicks off with an autumn feel

August was a good month on the stock markets thanks to better-than-expected corporate results. Nearly 80% of the companies in the US S&P 500 index beat analysts’ expectations (source: FactSet). Looking at how the various regions performed, the Asia-Pacific region (+4.6%) and Emerging Markets (+5.2%) stood out positively. Both regions are home to major chip suppliers (such as TSMC and Samsung) that are reaping the full benefits of global demand for AI hardware.

Unfortunately, sentiment turned in September due to rising interest rates. This is having a negative impact on the financial markets. Existing bonds are falling slightly in value, as newly issued bonds offering higher yields are more attractive to investors. Stock prices are also falling because investors view the higher interest rates as a potential brake on companies’ future profit growth.

Table 3: Net returns of the index funds included in the standard Peaks portfolios

Important to know: These net returns reflect the performance of index funds in August 2026, all of 2026, and since Peaks launched, after deducting Peaks, fund, and transaction fees. The value of investments can fluctuate, and past performance is no guarantee of future results.

What this means for your Peaks portfolio

Following a sunny August on the stock market, September got off chilly with falling stock prices. If you’re just starting out as an investor, bear in mind that this is all part of the process. Price fluctuations are an integral part of investing. Prices often go up, but sometimes they go down too.

The best thing you can do is stick to your strategy. First of all, you can spread your investments widely, such as with the Peaks portfolios. This helps you build up a solid buffer against market shocks. Secondly, it’s very important to keep the long term in mind. Don’t be distracted by daily newspaper headlines or temporary rises in interest rates.

So whatever the market conditions this autumn may be: stay calm and let your money do the work!