However, the main victims of the sell-off were virtual cryptocurrencies with names such as Bitcoin, Ethereum, Tether, Solana, Cardano, Dogecoin, Monero, Litecoin and others. Given the size of the market for virtual cryptocurrencies, the price slump there is significant. With book losses amounting to several hundred billion euros, there is more than just psychological wealth effects to fear. These can and will affect the buying mood of the speculators concerned.
As has so often been the case in recent decades, price slumps in important segments of the financial markets tend to have spillover effects. In more technical terms, one can say that during market corrections the correlations between different asset classes are relatively high. This means that even stocks that are not affected at all by events in the crypto segment tend to weaken. This has always been the case, and it would be surprising if things were to turn out differently this time around. Nevertheless, it is precisely when the stock markets are dominated by psychology that a particularly large number of mistakes are made. This is where the opportunity lies for value-oriented long-term investors. Cynics like to remind us of the “Greenspan put” in this context. This refers to the US Federal Reserve's intervention with interest rate cuts to support the stock market. In any case, this has certainly happened in the past. Experience shows that in particularly severe crises, central banks open the floodgates of money, and not only in America. Many investors may still remember the “subprime crisis” of 2007–2009. The same pattern could be observed at the beginning of the COVID epidemic.
On balance, LOYS funds were also unable to escape the general downward trend. Overall, the picture for LOYS funds is very mixed for the current year. Accordingly, it was decided to strengthen the company's profile in terms of sales and performance. At the end of the month, Dr. Christoph Bruns, the experienced founding partner and main shareholder of LOYS AG, took over the management of LOYS Global and the company. He is supported in equity analysis and corporate management by Mr. Ufuk Boydak. The intention is to implement in LOYS Global the granular and incremental portfolio management approach that has proved highly effective in LOYS Philosophie Bruns over the past two decades.
Sincerely yours,
Fund manager and co-investor
Dr. Christoph Bruns
Chicago, 30 November 2025