Aug 23, 2016
While recent comments of various U.S. Federal Reserve members have frightened off equity markets, the U.S. dollar in an initial reaction benefited from speculations about a sooner-than-anticipated increase in key interest rates in the United States. Investors will now focus on the annual international meeting of central bankers in Jackson Hole and eagerly await any signals about the Fed’s future rate hike timing, when Fed Governor Janet Yellen will speak on Friday.
Aug 22, 2016
The summer rally on equity markets seem to have come to an end last week. In Europe, levels reached at the beginning of last week could not be held and the EuroStoxx 50 traded about -3% lower on Friday compared to Monday. At the same time Wall Street stock indices traded sideways at the end of last week, lacking new economic evidence and corporate earnings news. Investors put the U.S. Federal Reserve’s short-term monetary policy direction back in focus, as some Fed members delivered hawkish comments pointing to the possibility of another rate hike this year.
Aug 19, 2016
The most important stock indices in Europe and the U.S. continued to trade sideways yesterday, as slightly better U.S. economic data, a higher oil price and perspectives of a restraint bias of the Federal Reserve monetary policy supported stocks.
Aug 17, 2016
During January’s turmoil, we undertook strategic purchases of high yield bonds. The position has rallied strongly since and will thus likely be trimmed back to our neutral quota again soon. Still, supported by the monetary policy-driven hunt for yield, as well as a brightening global economic outlook more recently, the asset class will remain attractive for diversified portfolios.
Aug 10, 2016
Major US equity indices haven broken out to new highs and emerging markets continue to recover. Against that background, we have decided to further raise our overweight in traditional public equity markets, thus lifting the overall equity risk (“beta”) of our portfolio strategies above our neutral position. Several factors should keep supporting equities in our view.