Investment Committee September 2020.
Within the classic 60-40 model portfolio, bonds are widely substituted with gold as it becomes more and more attractive for investors in a negative yield environment.
We consider equities and bonds on the expensive side at the moment despite FEDs unlimited liquidity. This will have severe consequences going forward, but we definitely cannot tell this happens in the month ahead.
Investment Committee August 2020
Here are the key points discussed in our monthly investment committee. Within the classic 60-40 model portfolio, bonds are widely substituted with gold as it is more attractive for investors in a negative yield environment.
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Investment Committee July 2020
These are key points discussed in our monthly investment committee meeting:The teams’ consensus for the month is we remain neutral with a long bias on equities.
Flows continue to be more important as market drivers than fundamentals and news, as the gap between the Wall Street and the ‘main street’ widens.Our view is that precious metals could continue to shine in a negative yield world. We remain positive on Gold, Silver & Copper.
2020 vs 1929: Similarities and differences
History has shown that every financial crisis is different from previous ones, in aspects of conditions, catalysts and market response. However, the 2020 stock market environment strongly resembles the 1929 market with equities rallying, further widening the gap between fundamentals and the valuations, while the real-economy weakens.
In this post we explore six similarities and three diferences between 1929 and 2020. We leave you to make your own judgement.
In this post the key points from our monthly investment committee meeting are discussed.
We are witnessing a liquidity driven market consequently of the limitless ‘bazooka’ stimulus packages unveiled by the Fed and the ECB.
Corporate America is still able to borrow cheap (rates kept low due to the virus and lockdowns).
Valuations are clearly extreme, however, this was also true at the S&P ~2700 levels and it would not be surprising if they continue to be more and more extreme and overvalued.