On the whole, 2016 proved to be a good year for equities. However the Brexit referendum in mid-year and the US elections did trigger painful price falls. The worldwide equities barometer, the MSCI World (in CHF), achieved a performance of almost 10 percent, largely thanks to the US equities market. The Swiss Performance Index (SPI) lost almost 1.5 percent in 2016. The overall European market developed positively, posting a plus of 2 percent (in CHF).
The DAX in Frankfurt and the French CAC 40 rose by 4.9 percent, the Japanese Nikkei by 0.4 percent and the Nasdaq technology index in the USA by 5.9 percent. The British FTSE 100 in London stood at 14.4 percent and the Dow Jones Industrial Average at 13.4 percent.
The year 2017 has started very positively. The Dow Jones Index exceeded the historical threshold of 20’000 points for the first time. Current equity price movements are reflecting the expectation of improved economic and profit prospects. In an environment of rising interest trends, however, the potential for valuation gains is limited. In 2017, investors will have to tolerate volatile capital markets at times.