October 2024: Strong recovery after autumn dip
The stock markets fell sharply in October but rebounded strongly in November, reaching record highs.
- Notable autumn dip in October
- Strong recovery in November
- Bitcoin breaks records
- Perseverance pays off
Notable autumn dip in October
After a calm September with positive returns, October brought the real impact of autumn. Markets declined, particularly in Europe (-5.1%) and Asia (-4.7%). However, the diversified Peaks portfolios fell much less sharply, ranging from a -1.2% decrease for the Cautious portfolio to -1.7% for the Adventurous portfolio. This resilience was due to relatively stable performance in U.S. equities (-0.1%) and limited declines in bond values. This clearly demonstrates how diversification can mitigate investment risks.
Table 1. Difference between current and new expectations
| Peaks portfolio | October | 2024 | Average yearly return since start of Peaks | Total return since start of Peaks |
| Cautious | -1.2% |
4.2% |
2.3% |
14.6% |
| Balanced | -1.4% |
6.5% |
4.5% |
32.9% |
| Ambitious | -1.6% |
8.7% |
6.7% |
53.9% |
| Adventurous | 1.7% |
10.9% |
8.9% |
76.6% |
Good to know: These are the net returns of the Peaks portfolios for the previous month, the year-to-date, and since the start of Peaks; after deducting Peaks’ fees, fund costs, and transaction costs. The value of your investment may fluctuate. Past performance is not indicative of future results.
The table above shows returns for a portfolio of €10,000. The returns do not take into account any deposits or withdrawals made during the month. If you have deposited or withdrawn money this month, your personal return will differ from the figures shown above. Additionally, your personal return will vary if you have invested less or more than €10,000 due to the monthly fixed costs charged by Peaks.
Table 2: Net yields of the index funds included in the Peaks portfolios
| Stocks | ISIN | October | 2024 |
Total return since start of Peaks |
|
North America |
LU0629460089 |
-0.1% |
16.8% |
153.8% |
|
Europe |
IE00B52VJ196 |
-5.1% |
5.9% |
67.0% |
|
Asia Pacific |
LU0629460832 |
-4.7% |
6.0% |
32.1% |
|
Emerging markets |
IE00BYVJRP78 |
-0.7% |
12.7% |
25.2% |
| Bonds | ||||
|
European Government bonds |
IE00B4WXJJ64 |
-1.0% |
0.9% |
-5.1% |
|
European Corporate bonds |
LU0484968812 |
-0.4% |
3.1% |
1.0% |
Good to know: These are net yields of the index funds in which you invest with Peaks in October 2024, for the entire year 2024, and since the start of Peaks, after deducting Peaks costs, fund costs, and transaction costs.
Strong recovery in November
It may still be early, but November looks set to be an exceptional month for Peaks portfolios. Investors are optimistic about Donald Trump’s return to the White House. They expect his policies to be more business-friendly (with tax cuts and fewer regulations), which would likely boost U.S. economic growth. Additionally, in October, the U.S. Federal Reserve further reduced interest rates from 5% to 4.75%, making it more attractive for businesses and consumers to invest, alongside supporting economic growth.
As a result of this positive outlook, the U.S. S&P 500 index has already risen by nearly 5% in November. For Peaks investors, the news is even better, as the ETF for sustainable U.S. listed companies has already increased by nearly 10% this month.
The value of this ETF has surged due to a significant position in electric car manufacturer Tesla, which has risen by more than 30%. Investors expect Tesla to benefit from the close ties between Donald Trump and Elon Musk (founder and major shareholder of Tesla).
Bitcoin breaks records
Since Donald Trump’s election on November 5, the value of bitcoin has soared. On November 13, bitcoin’s price reached over $90,000, a rise of more than 45% in just over a week. The increase is attributed to Trump’s intention to ease cryptocurrency regulations and to position the United States as a leading player in the crypto industry.
Did you know that with Peaks, you can easily invest in bitcoin (and ethereum)? You can do this by adjusting your portfolio to include bitcoin or by creating a custom ETF portfolio. You can easily open an additional account or adjust your current portfolio. Be aware that bitcoin and other cryptocurrencies are highly volatile. As a rule of thumb, Peaks advises not to allocate more than 5% of your portfolio to cryptocurrencies. Read more about investing in bitcoin with Peaks in the Crypto section of our blog.
Perseverance pays off
A well-known stock market saying is that it’s more important to spend time in the market than trying to time the market. Stock prices are unpredictable, and studies show that it’s impossible to consistently forecast them accurately.
If you want returns from investing, it’s crucial to diversify broadly, as Peaks does, and to let time work its magic. October and November have shown this once again. Anyone who might have expected further declines in October – and sold their investments in anticipation of the U.S. presidential election – would have regretted it in November due to these strong price increases.
The lesson here is clear: markets eventually recover from every crisis. The best investors are those who stay the course in both good and bad times. Perseverance has once again paid off!
Rosanne
Copywriter, Peaks
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