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.

March 2025 began with a volatile yet cautious tone across global financial markets, influenced by several key geopolitical and economic factors. The month started with gains on European markets, particularly in France and Germany, driven by optimism around new investment initiatives aimed at modernizing infrastructure and upgrading defense capabilities in the wake of growing geopolitical risks and uncertainty surrounding the US commitment to NATO. However, these gains quickly dissipated as tariffs started to become effective, leading to a reversal in the positive momentum.