In the third quarter of 2024, financial markets operated in a dynamic environment that presented both challenges and opportunities. Market developments were shaped by geopolitical tensions, monetary policy decisions and a changing economic situation. In this article, we will summarize the most important market movements.
market developments and challenges
In early August, Japan’s Nikkei index experienced a dramatic decline of about 27% from its highs. This turmoil was caused by an unexpected rise in the Japanese yen and weaker US jobs data, which prompted international investors to liquidate their yen-denominated loans and sell stocks. These sales also caused European and US stocks to fall by about 6% in just three days.
However, the uncertainty in the markets was short-lived. In mid-August, the markets stabilized again, supported by positive US economic data, which pushed the yen back down. Despite this recovery, the economic outlook for Europe remained weak, while the US economy showed signs of stabilization.
Throughout the year, many analysts had expressed „recession fears,“ particularly regarding the U.S. economy. These worries led to expectations of interest rate cuts by the Federal Reserve, which were eventually cut by 0.50% in mid-September – despite positive economic indicators.
The situation in China remains a big unknown. The Chinese government responded to structural problems such as high youth unemployment and a stagnating real estate market with a package of measures to stimulate the economy. This led to a short-term rise in the Chinese stock markets, but its sustainability remains questionable.
Inflation and currency developments
In the context of these market developments, the US dollar is crucial as the world’s leading currency. In July and August, the dollar depreciated, but with the stabilization of the US economy and rising inflation in certain areas, this trend reversed. The development of the dollar not only influences the pricing of raw materials, but also plays a central role as a „safe haven currency“ in times of crisis.
Central banks are faced with the challenge of cutting interest rates in a phase of declining inflation rates, while the risk of inflation remains. Inflation could pick up again in the fourth quarter in particular due to base effects, which could be reinforced by rising oil prices and an unexpectedly strong economy.
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Outlook on economic development
However, the economic outlook remains tense. While the US economy is showing signs of stabilisation, Europe is lagging behind expectations. Germany is expected to remain the laggard in the Western world with GDP growth of just 0.2%. In addition, the US is forecast to enter a possible recession in late 2024 3 . The uncertainties surrounding China and its economic challenges could also have an impact on global markets.
Central banks are faced with the challenge of adjusting their monetary policy. While interest rate cuts are intended to stimulate economic activity, there is a risk of renewed inflation due to rising oil prices and other external factors.
The third quarter of 2024 was marked by volatility and uncertainty in the financial markets.
While financial markets continue to fluctuate and challenges remain, by purchasing colored gemstones, investors can not only protect their wealth but also invest in an asset class that has been historically stable.
Given the current economic environment, it is crucial for investors to make proactive decisions and focus on stable values.
The German Gemstone House therefore continues to offer you the opportunity to diversify your assets by purchasing investment gemstones as alternative tangible assets and thus protect yourself from the increasing uncertainty of international markets and critical political innovations.
Gemstones are not only a physical asset; they also represent a strategic investment that acts as a safe haven in times of economic uncertainty. The German Gemstone House follows a strict quality promise that ensures that every gemstone is delivered with a gemmological report and a valuation report from a publicly sworn expert. This creates transparency and trust for investors. These gemstones not only represent an attractive opportunity for asset diversification, but also offer effective asset protection against inflation and economic crises.
The German Gemstone House has focused on the top 12 colored gemstones that offer the greatest potential for value stability. These gemstones are not only aesthetically pleasing, but also timeless values that can retain their value over long periods of time.
We follow a 7-point quality promise that ensures that every gemstone is delivered with a gemological report from a renowned laboratory and a valuation report from a publicly sworn expert. This process ensures transparency and trust for investors.
Gemstones as a Crisis Investment
Gemstones have proven to be stable investments over centuries. They offer not only physical value, but also an emotional connection for many families. Preserving values across generations is a key aspect of long-term wealth creation. Deutsche Edelsteinhaus enables investors to customize their portfolios and thus effectively protect their assets. In summary, the third quarter of 2024 presented both challenges and opportunities for investors. The developments in the markets require prudent investment management to secure one’s own assets in uncertain times.
Would you like to find out more about the latest investment opportunities in the DEH Colored Gemstone Portfolio? Contact us for a personal discussion.
