October: The stock market once again reached record levels

Inge Heydorn

The stock market recovered in October and again reached record levels. We were a bit cautious in our view of the market ahead of the reporting season as we expected many companies to suffer from delivery problems. To this must be added that we now have a deficit of jobseekers in many segments, which has led to wage inflation in recent months.

We expect that delivery problems will hamper the level of advertising that will be done during the quarter, which reduces the growth of several mega caps in technology that is dependent on advertising. The fund ended up at 5.04% on the month and is now up 21.81% on the year.

TVspill's shares continue to go downhill and Activision is down sharply on its report for the 3rd quarter. The report itself was in line with expectations, but the delay in Owerwatch 2 and Diablo 4 together with the staffing problems in Blizzard are putting pressure on the stock. However, we keep the share as we think that the management now addresses the problem in the company at the same time as the valuation is at a 5 year low. Net cash is now also around 12% of the company's market value.

Software continues to be the strongest sector in the portfolio and we expect strong reports for the second half of the sector for the sector. We have already seen an accelerating growth in the reports from Servicenow and Microsoft.

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