Artificial intelligence

A look back at the first six months of 2024 reveals some pleasing, surprising and sobering news. The very positive development on the global equity market, driven by the growth momentum of companies related to AI technology, can be described as absolutely pleasing.

Is success guaranteed when you invest in “high-tech” equities? One might be tempted to think so, since high tech is the sector with the strongest long-term growth in turnover and profits. But it’s just not that simple.

Along with the equity markets in general, Raiffeisen-MegaTrends-ESG-Aktien can look back at several volatile years. After a very difficult time in 2022, this globally investing equity fund has bounced back strongly, especially over the past six months. How does the current situation look, and what is the outlook for the years to come?

Should I invest primarily in equities or in bonds, or in both equally? Which equity markets or bond segments are especially promising right now? Are certain commodities or precious metals maybe attractive? Raiffeisen-Global-Strategic-Opportunities takes care of these difficult questions for investors. For this, the fund bases its decisions on a consideration of the long-term valuations and earnings prospects versus the risks.

There are various instruments available for investing in the capital market. When it comes to investment funds, a distinction is often made between ETFs, which are passive funds that are traded on equity exchanges, and actively managed funds. These are two investment styles that can each make sense to use in different situations, depending on the investment objectives and customer needs.

Following the price declines in April, the developed equity markets did well again in May, posting an overall gain of more than 4%, with the USA leading the way. By contrast, developments for EM equities were much more uneven, and at the index level there was only a minimal gain of around 0.3% (both figures calculated in USD).

Surprisingly few investors are aware that dividends make up a very significant share of the total long-term return of equity investments, especially if they are regularly reinvested. Depending on the market and period, the figure has been between 30% and 50% in the past, and even as high as 70% in some decades!

The Emerging Markets present a number of major challenges for investors when it comes to sustainability and ESG-criteria. However, understanding and overcoming these challenges also opens up significant opportunities, both in terms of earnings and promoting a transition to sustainable business practices in the Emerging Markets.