Rietumu Asset Management experts: volatility back to life
24-Jul-2017, 09:30 / Products & Services The specialists of Rietumu Group have prepared an overview on the return of the investment funds of Rietumu Asset Management (RAM) for June.
Along with information on the structure and dynamics of the funds, the review contains the traditional analysis of the current political events and key economic factors that exert an influence on financial markets.
As the specialists of RAM note, for the first time since the end of 2016 resumed active talks about reflation – a policy designed to increase growth and curb the effects of deflation. Mario Dragi’s speech served as a reason for the talks resumption.
In June representatives of several central banks – Bank of Canada, Bank of England, ECB and Fed made “hawkish” comments. Policymakers were confident that financial system is safe, downside risks to the economies have lessened, and low interest rates have been fulfilling their purpose. As a result, investors became more prone to the idea that the era of cheap money is coming to an end.
“Indeed, low interest rates stimulated economy in Europe, USA and other countries. However, that stimulus had the other side of the coin. At the end of 2016, global debt reached enormous 217 trillion dollars or more than 327 per cent of the world GDP. Nevertheless, debt servicing is not a concern in the low interest rate environment. However, higher rates could make refinancing of current huge debt load an urgent problem,” say RAM experts.
During the last eight years financial markets were awash in cheap and easy money. Money abundance created by central banks significantly influenced returns, while prolonged time period disturbed risk perception. Prospects of financial markets and real economy now depends on how smoothly the world will proceed to the new old era.
In the review are also noted good news about business climate in Europe, the best S&P 500 semiannual performance since first half of 2013, as well as situation with U.S. dollar, which had its worst quarter since 2010.
The review on RAM and the current comments of the specialists can be found 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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