Global economic growth continues to be strong. Especially corporate expenditures (capex) show solid growth. On the other hand consumer spending suffered somehow from higher oil prices.
Venezuela is in a difficult situation. Hyperinflation describes the economic environment best. For 2017, the IMF estimates a consumer price inflation of 650% y/y, and for 2018, the estimate is 2,300%.
This week we held our monthly Investment Committee meeting. Although only little has changed with regard to the overall economic picture, we were having a few interesting discussions that we would now like to share with you.
The Council of the European Central Bank pulled an impressive stunt at the monetary policy meeting on 26 October. ECB President Mario Draghi announced to reduce the extremely supportive monetary policy in the near future while sounding very cautious (dovish) with regard to the process at the same time.
Equities have without a doubt benefited from falling or low interest rates in the past. Along with company earnings, the level of interest rates is indeed a crucial driver of dividend-paying shares.
Guest Author: Felix Dornaus, Senior Fund Manager
The following points reflect my impressions at the presentations that I attended at the IMF-meetings in Washington from 12 to 15 October 2017.
Author: Dieter Kerschbaum, Communications Specialist Österreich
Half a year ago we launched a new equity fund, which offers an investment opportunity in global equities with a stable dividend yield above market average. At the same time, we take into account criteria of sustainability as well as social and ethical criteria in the stock picking process. We spoke with Alexander Sikora-Sickl, who is responsible for the investment process, about the performance since the launch of the fund and about the environment for dividend shares.
The events in Catalonia are a new disruptive political element on the capital markets. The basic question is whether the generally favourable environment for risky assets is sustainable.
Guest author: Jenny Teng, Senior Fund Manager
Jenny Teng is senior fund manager in the equity team of Erste AM. Born in China she is employed since 2008 at ERSTE-SPARINVEST and responsible for the Asian equity markets.
Long enough we have heard about the depreciation of Chinese currency Renmimbi (RMB), but this year RMB has showed rather unusual movements.
Once a month the Investment Committee of Erste Asset Management convenes in order to discuss the medium-term market outlook. We are going to start a new blog, where we will report on what drives our investment professionals and what risks they see.