05/30/2023 – The global economy’s growth continues to be depressed by multiple shocks and stressors, such as the pandemic, the Russian invasion, the energy crisis, inflation, drastic tightening of monetary policies, sharp rises in government debt, and geopolitically induced restrictions on world trade. We’ve moved from a world of abundance – where prices remained stable for the most part –…
05/04/2023 – As central banks have misjudged inflation dynamics, they’ve been forced into delayed action that has been all the more forceful, with rapid and large interest rate hikes. Of course, this has led to the destabilization of interest rate-sensitive sectors, such as finance and real estate. The unusually long period of extremely low interest rates favored speculative investments, which…
04/30/2023 – Reporting season dominates market movement Stocks hit new highs in USA and Europe Inflation falls gradually Sell in May and go away? Belvoir Global Allocation II Universal records a gain of 1.4% in April, +8.4% YTD At the end of April, the fund’s equity ratio is 70% before hedging and 50% net after hedging. Bonds are weighted at…
04/30/2023 – Core inflation is the problem of the central banks In the fixed-income area, we remain invested in corporate bonds with good credit ratings at a short duration The equity exposure has been sharply reduced to below 50% in view of a correction Read more about the Belvoir Global Allocation Fund in the current Monthly Update written by the…
04/28/2023 – In April, the global economy proved its resilience once again, despite stubborn inflation and soaring interest rates. This was boosted by a steadfastly robust labor market. China’s growth has been stronger than expected in the first quarter, pulling emerging Asian economies along with it. The US and Europe are teetering on the brink between growth and contraction. As…
04/05/2023 – Despite the stress in March, the markets in Europe developed comparatively better throughout the 1st quarter than stock exchanges in Asia and the US (except for the Nasdaq). Europe’s strong performance can be ascribed to lower valuations, surprisingly robust economic data and a different, more defensive composition of indices. In a time of heightened uncertainty in the financial…
04/03/2023 – What a volatile month it’s been for stocks, bonds, currencies, and commodities. Above all, there has been a severe crisis of confidence in the overall stability of the financial system. Sparked by the bankruptcy of Silicon Valley Bank, the subsequent bank run, and the state-backed rescue of Credit Suisse by UBS, memories of the 2008 financial crisis have…
03/31/2023 – Crisis of confidence due to bank bailouts By definition, we’re no longer in a bear market – true or false? Interest rates are falling Reallocations have borne their first fruits Belvoir Global Allocation II Universal records a plus of 4.0% in March In this reporting month, the biggest winners are Adobe (+16.13%), Barrick Gold (+12.94%), Microsoft (+11.94%) und…
03/31/2023 – Despite the collapse of Credit Suisse, markets were relatively stable. On the fixed income side, we continue to favor high quality corporate bonds (non-bank) with a medium duration. We have slightly increased our equity allocation, which currently stands at 75.6%. Read more about the Belvoir Global Allocation Fund in the current Monthly Update written by the fund manager…
03/13/2023 – The Fed is trying to prevent bank runs in the US by guaranteeing customer deposits at SVB respectively all other banks. It will also lend to banks to secure customer deposits against government bonds or other securities. Sectors to suffer most are technology, private equity and real estate. Markets will remain volatile and flight to quality continues. Actually…
