CURRENT
POLL

ECONOMY

Will there be a positive surprise in global growth in the next 12 months?

40.91%
Y
59.09%
N
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Gerhard Winzer am 22nd March 2017

A masterpiece

(c) iStock Photo

The US central bank Fed increased the Fed funds rate last Wednesday. The risky asset markets reacted to the move with an increase. At the same time, the US dollar depreciated. How can that be explained?
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Paul Severin am 20th March 2017

How sustainable are batteries?

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A growing number of devices do not need a constant connection to the power grid anymore and therefore allow a mobile usage. Batteries ensure that power is available regardless of its time and place of production. In a world that does not work without energy we need storage units that can provide large amounts of energy. However, every solution to this problem comes with a price tag, also in terms of sustainability.

Read the current issue of our sustainable Magazine ERSTE RESPONSIBLE RETURN – The ESG Letter here:
esgletter.en.erste-am.com

 

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Gast-AutorIn / Guest Author am 17th March 2017

What effect does the French election have on the bond markets?

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Author: Stephanie Clam Martinic
Senior Fund Manager Multi Asset Management

In 2016, election results surprised us twice: both the Yes vote for Brexit and Donald Trump’s victory in the USA were unexpected, but did happen. This prompts the question of whether the European Union (EU) is in peril because of the French elections in April.
Will Marine Le Pen win the presidential election in France and then lead the country – one of the original founders of the European Union – out of said union?

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Paul Severin am 13th March 2017

YIELD RADAR: March 2017

The global economic recovery carries on, with USA and Germany entering a boom phase. Global leading indicators continue to increase. A recovery can be also be observed in the so far weak industrial production rates and corporate investment activities. Infl ation rates are rising the developed economies, in Central and Eastern Europe and in China. However, core infl ation rates remains low for the time being. Infl ation risks exist mainly in the USA, where the fi nancial stimulus is planned in a state of full employment. In the US the Fed is expected to increase the base rate on 15 March. With respect to the European Central Bank the market expects hints for a reduction in the existing bond repurchasing programme.

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Gast-AutorIn / Guest Author am 03rd March 2017

Equity performance: focus on emerging markets

Autorin: Gabriela Tinti
Senior Fund Manager Equities Emerging Markets


The stock exchanges in the emerging economies and their performances have fallen short of expectations in recent years. Speculations about the weakening economy of China, the decline of commodity prices, and an appreciating US dollar have had a detrimental effect on emerging markets. However, the trust of investors in these markets has been making a comeback since 2016. In spite of Donald Trump’s election victory and the fear of a US policy of protectionism, the emerging economies are currently outperforming the developed ones.

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Gerhard Winzer am 23rd February 2017

Fragile bull market

(c) iStock

It is as difficult to remain invested in a bull market as it is to leave a bear market. After all, investors are risk-averse. Taking into account the four most important categories for the assessment of the attractiveness of asset classes – valuation, liquidity, positioning, and growth – one would conclude that the most important driving factor for the markets builds on the last one.

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Harald Egger am 16th February 2017

5 facts that favour dividends

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Many investors focus on capital gains while disregarding the significance of dividends. And are wrong in doing so, from my point of view. The total return of a share is after all the sum of capital gains (i.e. rising prices) and dividend income. Income from dividends is of particular relevance for investors with a long-term investment horizon.

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Peter Szopo am 07th February 2017

Equities: Threats and opportunities of rising interest rates

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US interest rates are on the rise. It took the Federal Reserve Bank (“Fed”) twelve months, after the initial lift-off in December 2015, to make the second move, but for two reasons the odds of more frequent rate hikes over the next twelve months have increased. First, the Fed has turned more hawkish and second, inflation expectations have started ticking higher. Only recently, Chairwoman Yellen warned that “waiting too long to begin moving toward the neutral rate could risk a nasty surprise down the road–either too much inflation, financial instability, or both.

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Gast-AutorIn / Guest Author am 31st January 2017

High yields and a potential turnaround make LATAM bonds an interesting investment

(c) Fotolia

Autor:
Christian Gaier, Head of Fixed Income Rates, Sovereigns & FX, Erste AM

I would like to share my impressions from my latest investor conference in London that I attended on 16th January 2017. The conference was organized by Banco Bilbao Vizcaya Argentaria (BBVA), a leading global financial group with a strong franchise in 35 countries and a leading position in the Spanish market and in Mexico. For us, a perfect partner when it comes to research on countries and companies in Latin America (LATAM).
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Gerhard Winzer am 27th January 2017

Higher growth vs. increased political uncertainty

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The first weeks of the new year have already picked up from where the trends that started in 2016 and the hypotheses for 2017 left off: higher growth, normalisation of inflation, increased uncertainty with regard to the effects of Trumponomics, and a gradual end of the loose monetary policy.

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