For a month that is typically the worst performing one of the year for equities, it ended up being just another strong month in a long streak since “liberation day”, fueled by the hope of an interest rate cut and solid corporate earnings.

August 1^st came, and while us common folks may not have felt anything, many US industries and pretty soon the consumer, will feel a pinch. This is also true for foreign companies exporting to the US as most are not able to pass on 100% of the tariffs’ cost. More on this in the chart of the month.

The day of reckoning is upon us. August 1^st is not only the Swiss national day, but also the day the previously postponed tariffs come into effect.

Last month, in the title of our monthly letter, we urged you to stay invested (May – Don’t go away just yet). Armed with hindsight, we can now say that it was the right call.

During the month of May, all conventional wisdom went out the window.