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RAM Experts: Industrial metals rally, boosted by Trumponomics expectations

07-Dec-2016 / Products & Services Specialists of the Rietumu Group have prepared a new review on the profitability of investment funds of Rietumu Asset Management in November. 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.

“November was a month of surprises. Donald Trump election victory appeared to be less catastrophic than was feared. Investors focused on expected changes in fiscal policy – boosting spending on infrastructure, reforming the tax code, reducing the regulatory burden. The unexpected presidential election outcome boosted performance of industrial metals and equity, especially returns on stocks focused on the U.S. domestic market. In addition, Trump’s victory increased future inflation expectations, which in its turn raised probability of the FED’s rate hike in December”, note the experts.

“OPEC reached a deal to cut production by 1.2m barrels a day for the first time in eight years. The cartel also made an agreement with non-OPEC countries to contribute by a reduction of 0.6m b/d production. The first market reaction was extremely bullish. However, the near future of oil prices depends on agreement execution and shale oil reaction. Overall, we expect further steady recovery in oil prices”, consider the experts.

It is also noted in the review that continued infrastructure investment program in China and expected infrastructure spending boost in the U.S. ignited prices for industrial metals. Moreover, the OECD radically changed its view on fiscal policy – previously the organization favored fiscal austerity, now OECD looks favorably upon fiscal stimulus.

“In November, almost all US companies finished filling quarterly financial results. The results beat both analysts’ estimates and investors’ expectations. According to the Factset, S&P 500 earnings grew by three percent – the best pace in a year. Overall, this month various surprises and events were generally favorable for investors”, note specialists of the Rietumu Group.

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.



Eleonora Gailisha
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