201506.30
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Investment View Q3 2015

What causes long term bull markets to stay intact? The very simplified answer is; to be in an economic environment with the right balance between inflation, wage increases and productivity. Without wage increases consumer demand cannot grow, without productivity companies cannot afford to pay higher wages. With low input costs, together with higher productivity, profit…

201503.31
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Investment View Q2 2015

The low to mildly disappointing global economic growth forces many central banks to continue or even increase their loose monetary policy which is supportive for asset prices. It also keeps down volatility. Global growth shows little signs of breaking out and the first interest rate hike by the Fed will most likely be delayed towards…

201412.31
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Investment View Q1 2015

We are positive on equities due to three game changers, being the low oil price, Mr. Draghi’s QE programme, and the weak Euro. We anticipate European equities to outperform U.S. equities driven by lower valuations and higher dividend yields, the stronger USD which should hit Q4 2014 profits of global U.S. companies and the generally…

201409.30
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Investment View Q4 2014

The summer period in Europe was dreadful, not only from a meteorological point of view. June and July European stock markets dropped sharply by about 10%, although some European markets recouped most of their losses in August and September. The picture developing in the first days of October does not bode well, however. In fact,…

201406.30
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Investment View Q3 2014

The third Quarter started amid geopolitical events which brought back volatility to global markets. The escalation of the conflict between Ukraine and Russia culminated in the shooting down of Malaysian Airlines MH17 followed by sanctions announced by the United States and the European Union. Simultaneously, Israelis occupied the Gaza strip and the fighting between the…

201403.31
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Investment View Q2 2014

The outperformance of fixed income instruments compared to equity investments in Q1 was a surprise and perhaps indicative of investor’s appetite in 2014. World bonds expressed in EUR returned +2.67%, easily outperforming World equities with a total return of +1.39%. The high and low of World bond returns was between 0 and +3.5%, while the…

201309.30
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Investment View Q4 2013

Frau Merkel was elected as the new German Chancellor but her party did not get the majority. The likely outcome is a return to a Conservative/Socialist government. Although negotiations between the two parties have yet to be completed, we expect demands by the Socialists for a national minimum wage will come through. This will increase…

201306.30
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Investment View Q3 2013

The current economic environment is complex for investors: high priced US stock markets, poor world economic growth, extremely low interest rates and the Fed tapering its Treasury bond buying program, currently US$ 85Bn per month. On top of this, we do not know who is going to replace Ben Bernanke, the current Fed Chairman. Mr…

201303.30
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Investment View Q2 2013

Global bond markets were flat for the quarter, with the exception of higher risk assets such as high yield bonds and emerging market bonds. Eurozone peripheral government bonds saw their interest rates go down more than expected, outperforming risk-off assets such as Bunds. It was mostly US stocks that performed well during the quarter on…

201212.31
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Investment View Q1 2013

The year 2012 can probably be best described by a quote from Charles Dickens’ novel a “Tale of Two Cities”: “It was the best of times, and it was the worst of times.” Investors entered last year full of concerns over the European Souvereign debt crisis, slowing growth in China, and issues regarding the fiscal…