Turned out that there is another important milestone has been just reached. But let me tell it in due time.
Buy and hold long term is boring, so there are couple of things that I follow to satisfy my need for action. One is the benchmark of the global stocks market, "MSCI ACWI IMI Net Total Return in CHF” as calculated by MSCI. This year I have started to work with “Landesindex der Konsumentenpreise (LIK)” or “Swiss CPI” and adjust the benchmark for the inflation by dividing its value in CHF by LIK value for the previous month. The goal is to (well, try to) track the change in “purchasing power” of the benchmark rather than its nominal value.
The previous wave’s maximum and a new ATH was reached on 27.03.2024, 2011.59 CHF, +15.7% YTD. Inflation-adjusted, it was still -2% from the previous ATH on 16.11.2021 and 14.8% YTD. All in all, the rally from the 26.10.2023 bottom have brought +25.8% in nominal CHF and +24.9% inflation-adjusted.
LIK for March 2024 came unchanged from the February value, which means that there were no additional pressure on the inflation-adjusted benchmark going into April. It didn’t really matter: there was a substantial decline, first time since 5 months. The bottom on 19.04.2024 was at 1918.69 CHF nominal, -4.6% from the previous top (= ATH). The inflation-adjusted pull-back was the same, and the value at the bottom was -6.5% from the ATH. Still in the “normal market state”.
LIK for April 2024 was 0.37% higher than for March. The carrot has moved farther away from the donkey’s snout.
Now, the important milestone: on 22.05.2024, the benchmark has reached a new ATH at 2062.698 CHF nominal (+18.7% YTD, +7.5% from the previous bottom), and the inflation-adjusted benchmark has also finally marked a new ATH with +17.2% YTD gain, +7.1% from the previous bottom! It took 2 years, 6 month and 4 days, but we are finally there! And we are still riding this wave.
Stay the course.