RAM Experts: High Uncertainty Is Retained On The Markets, Which Bears Both Risks And Good Opportunities
15-Sep-2016 / Products & Services Specialists of the Rietumu Group have prepared a new review on the profitability of investment funds of Rietumu Asset Management in August. The review includes an analysis of key economic indicators and monetary policy. It provides comprehensive information on the situation on stock markets, bond, currency and commodity markets. The review is accompanied with extensive comments from experts.
“The last summer month pleased with serenity of financial markets. S&P500 was not the only index to refresh its historical maximum, two other major indices – Nasdaq and Dow Jones Industrial demonstrated new historical highs in August. Main reasons for that were released financial reports, investor’s optimistic expectations and FED’s money monetary policy. While stock indices stood at the record levels, stock price volatility was extremely low. Historically strong correlation between stock volatility and high yield bonds suggest that in case volatility will remain low the bonds could appreciate further”, note the experts.
“China showed improvements in business activity, especially in non-manufacturing sector. Nevertheless, growth of fixed investments declined, but continued increase in rent in the major cities of China stimulates construction and demand for industrial commodities. At the same time, slow growth of the economy, sluggish inflation, extraordinary unconventional monetary policy and persistent resistance to reforms derail attractiveness of Europe”, consider experts.
It is also noted in the review that this month oil prices were influenced by the data on the reduction of oil product reserves and the announcement about an informal meeting of leading oil manufacturers in Algiers in late September. Still, high uncertainty is retained on the markets, which bears both risks and good opportunities.
The RAM review and latest expert comments can be read here.
Rietumu Asset Management (RAM) is part of Rietumu Bank, the leading private bank in Latvia. The company provides professional asset management services. RAM’s products and services are intended for a wide range of investors and are designed to meet the specific demands and needs of each customer. In the current market conditions, RAM’s specialists offer their customers the ability to reach an effective yield to risk ratio.
DISCLAIMER: This overview (including any attachment (-s)) does not constitute a request, offer, recommendation or invitation of any kind to buy, sell or redeem any financial instruments or to conclude and/or to perform other transactions of any kind. The authors of the information presented in this overview, as well as JSC “Rietumu Asset Management" IMF, registered in the Commercial Register of Republic of Latvia on January 29, 2014, registration number 40103753360, legal address: 7 Vesetas Street, Riga, LV-1013, Latvia, hereinafter referred to as “RAM” , both together and individually, are not liable for possible use of the information presented in this overview, including any direct or indirect damages (including lost profits), as well as any penalties. Evaluations, opinions and forecasts presented in this overview are based solely on the RAM’s specialists' conclusions regarding financial instruments and issuers considered in this overview. While the information contained in this overview is obtained from sources believed to be reliable, the RAM does not guarantee its accuracy and completeness. Any of your investment decision should be fully based on your assessment of your personal financial circumstances and investment objectives. The RAM draws your attention to the fact that transactions in the securities and financial instruments market involve risk and require appropriate knowledge and experience.
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