Still an inevitably complex month for the financial markets with inflation and all its causes (pandemic, war, sanctions, rising commodity costs, etc...) being the main issue. The remedy put in place by the major Central Banks, raising interest rates and tapering, is having negative effects as it is troublesome for consumers and businesses and therefore potentially demaging to economic growth dynamics. The sharp rise in inflation has led the major Central Banks to implement tighter monetary policies. The U.S. Central Bank (FED) raised interest rates by half a percentage point to a range of 0.75% and 1%. This is the [...]
At the end of the month, financial markets were heavily impacted by the outbreak of war in Ukraine. While January was negative due to tighter monetary policies, February was impacted by the Russian invasion of Ukraine and all indices closed negatively. The financial markets, frightened by this event, began to deal with the sanctions imposed on the invader. Rising commodity prices and new supply bottlenecks are a serious threat to global economic recovery, all at a time when Covid 19 was coming out of two years. The Fear of global escalation, the threat of nuclear war, and media coverage facilitated [...]
In the first month of the year we saw a wave of selles on all the global stock markets, with substantial drops in both the equity and bond markets. The prospect of tighter monetary policies, geopolitical uncertainties and high valuations pushed investors to take profits on a part of the profits recorded in the last year. This volatility has led to losses that have exceeded the levels observed during the most difficult phases of recent financial market history. Let's analyze the reasons for this nervousness. Concern about the rise in interest rates: in December, inflation in the United States [...]
Stelinvest SA is proud to announce that is has obtained the authorization for the provision of services as portfolio manager by the Swiss Financial Market Supervisory Authority (FINMA). It is a recognition that enhances our work and makes us one of the first Swiss financial advisory companies to have obtained this important certification.
The month of December saw a general rise in equity markets, despite still negative news on the healthcare front and signs of the approaching end of accommodative monetary policies. The post-coronavirus recovery continues, despite declining dynamics. Therefore, at its December meeting, the US Central Bank (FED) decided, as planned, to reduce bond purchases more faster, no longer by USD 15 but by USD 30 billion per month. In addition, up to three rate increases are expected for coming year. For 2023, interest rates are now set at 1.6%. The bond markets were not impressed by the news, since a great [...]
At the end of November, the financial markets underwent a sudden turnaround, due to the return of the pandemic with the discovery and spread of the new Omicron variant. Not only the threat of inflation and its consequences on the tightening of monetary policies in the world, but also the return of the specter of new closures and blockades due to the re-emergence of contagions have cooled the expectations of financial operators. At the same time, the theme of inflation is becoming increasingly important at a global level, not only in the bond area. From inflation expectations, both those discounted [...]