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.

This month began on a strong note, on the “Liberation Day” tariffs accounced by President Trump on April 2 had the impact of a thunderclap and markets collapsed. In the space of 3 days, the S&P500 lost 15%, the Nasdaq -16%, the Eurostoxx -14.5%, the NIKKEI -14%. By month end, with some talks of reprieve and reversals, investors' fear had diminished, and the NASDAQ, for example, was up 0.9%, which seemed unthinkable after April 2nd. But with heightened uncertainty, investors remain perplexed by what lies ahead, not excluding the possibility of a further downturn.