Oct 14, 2019
Weekly Investment Focus

« The dollar is king but it may ultimately fall »
The US dollar surged against the world’s major currencies.
The greenback has remained one of the traders’ favourite currency to hold this year amid
high uncertainty and the divergence between the US and the rest of the world fundamentals.
But all good things must come to an end.

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Oct 07, 2019
Weekly Investment Focus

« Beware of inflation »
Slowly but surely, inflation is eroding saved wealth.
This has been particularly the case since the 2008
financial crisis and the decline in nominal returns.

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Sep 30, 2019
Weekly Investment Focus

« Ready to ride the next wave »
The economic cycle is reaching its trough. The next stock market
correction should be seen as an opportunity, not a source for concern.

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Sep 24, 2019
Weekly Investment Focus

« Do not try to buy duration »
A 100 basis point increase in US 10-year sovereign yields in six months would generate a negative
performance of -6.7%, including coupon and roll-down. It would be even more painful for German bonds.

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Sep 16, 2019
Weekly Investment Focus

More and more international companies are moving their factories to Vietnam to produce manufacturing goods.
here are two main reasons for this: wages are low and to bypass US tariffs imposed on China.

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Sep 10, 2019
Weekly Investment Focus

The British pound is moving a little in line with economic and financial fundamentals and a lot with expectations of political decisions about Brexit.
It is undervalued but buying it too early is a risk.

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Sep 02, 2019
Weekly Investment Focus

Defensive assets like gold and sovereign bonds were the best investments this summer. It is too early to sell them while central bankers prepare to hold their monetary policy meetings between 12 and 19 September.

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Août 12, 2019
Weekly Investment Focus

August 2019 looks like October 2018. After reaching high levels, equity markets corrected sharply, driving volatility indices upwards (see chart 2). Similarly, investors are concerned about the ongoing trade war between the United States and China, as well as the lack of independence of the US Federal Reserve from the Trump administration. But on closer examination, this is as far as the similarities go because this time the fears come from an anticipation of a severe economic slowdown, or even a recession. Expectations of inflation are falling, pushing down government bond rates, while 10 months ago inflation fears were driving up 10-year yields (see chart 3). As proof, the latter point to 1.73% compared to 3.25% in October 2018.

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Juil 22, 2019
Weekly Investment Focus

Equity investors did not take advantage of the higher yields environment in 2018 to buy US
banking sector stocks. The latter should therefore be able to withstand the fall in rates.

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Juil 08, 2019
Weekly Investment Focus

The fall in global bond yields favours the appreciation of assets that offer zero or negative returns, such as gold and the Swiss franc. Thomas Jordan reiterated that « the SNB will remain active in the foreign exchange market as necessary » to keep the Swiss franc down. But on closer examination, they have already bought CHF 36 billion in the last six months.

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