Benchmark update! Let’s wrap up 2024 results.
As a benchmark of the global stocks market I use “MSCI ACWI IMI Net Total Return in CHF” as calculated by MSCI. These data can be downloaded from MSCI website using a non-obvious procedure outlined above.
Besides the nominal value, I also look at the inflation-adjusted data. To do the inflation adjustment, I divide the value in nominal CHF by the last known value of “Landesindex der Konsumentenpreise (LIK)” (“Swiss CPI”). That means, to allow “real-time” analysis of data, during a running month I use LIK for the previous month. For the last (week)day of a month, I use LIK for that month. Usually it takes few days to be calculated and published, but this procedure is more consistent with the historical analysis of inflation-adjusted stock market returns. So I effectively do both “real-time” and “historical” analysis in one table.
The exact reference date of LIK that I use is not relevant, because for inflation-adjusted data I only look at relative changes.
LIK status:
LIK for November came -0.2% below the value for October and -0.83% below the peak value for May and June 2024.
LIK for December came unchanged.
The one year inflation for 2024 (change from Dec 2023 to Dec 2024) was +0.65%.
Market Benchmark status:
On 16.12.2024, the benchmark had reached a new ATH in nominal (2213.06 CHF) and inflation-adjusted terms. The YTD gains were +27.3% in nominal and +26.5% in inflation-adjusted CHF.
2024 was finished at the benchmark level of nominal 2178.11 CHF with yearly gains of +25.3% in nominal and +24.5% in inflation-adjusted CHF, -1.6% below ATH.
Stay tuned for the next episode!
元博士