ZWEI Wealth Office Investment Committee - July 2025

The Wealth Office Investment Committee meets quarterly to analyze current market developments and review the returns of investment providers. Strategies and results are evaluated in order to create a sound basis for future investment decisions.

The Wealth Office Investment Committee was conducted in English.

Market Alert: An initial assessment

Equity market valuations have fallen significantly in recent trading days. This is mainly a reaction to the new tariffs announced by the US government last week. In particular, the financial markets fear a possible recession and higher inflation that could be triggered by the announced measures, as well as the associated uncertainties in international trade.
The ZWEI Wealth Office Investment Committee discussed the most important issues yesterday. An initial assessment of the current situation can be found below.

Recommendations:

The changes announced by the US government could shake up the economy in the longer term and trigger fundamental changes. At the same time, it is still too early to predict developments in the coming months and the resulting adjustments. Our current recommendations:

Should you adjust your investment strategy based on recent developments? No! Your Wealth Officer has developed your investment strategy on the basis of liquidity planning, which gives you the security to cope with such a stressful situation without adjustments.

Are your selected managers still valid? Yes. However, it should be noted that certain investment styles may temporarily go out of fashion and others may become more attractive. Growth-oriented managers are suffering more from the current market turmoil, while others, such as low-volatility or value strategies, are currently outperforming.

Is it appropriate to use the decline as a buying opportunity? No, if you have reached your strategic equity allocation, stick with it without increasing risk. Yes, it is worth considering if you have not yet reached your strategic equity allocation. Note that such a decision must also be carefully considered in terms of the time horizon. In the twelve instances since 1945 where the S&P 500 fell 20% from its peak, the index generated positive returns the following year 67% of the time (average return 12.9%). Over three years this rose to 91 % (average return 29.2 %) and over five years to 100 % (average return 52.7 %).

We will continue to monitor developments and contact you if necessary. In the meantime, please contact your Wealth Office for further information and details.