Who doesn’t know it – sitting together in a boisterous atmosphere, with a glass of champagne in your hand. Or two. Christmas is the celebration of joy, of Christmas markets, and of excessive alcohol consumption: a good reason for us to dedicate this ESG Letter to the topic of alcohol.
The Austrian term “Komasaufen“, which refers to the practice of binge drinking, received the “Doublespeak Award” 2007. The award followed significant media coverage and discussion on the alcoholic excesses that young people were engaging in with extremely sweet alcoholic beverages.
Many people harbour an undefined fear of psychologists. Maybe it is the fear of someone being able to look inside them and know what they are thinking. And, let’s be honest: how many times didn’t you think: “Thank God nobody knows what I am thinking right now”? But that was in the past. Nowadays, Google, Facebook, Amazon et al. know quite well what we are thinking. Apparently even better than we do ourselves or the people close to us.
Big Data contains a lot of good, but also a lot of controvery. Just think of social scoring, for example. Your friends, your media consumption, your daily habits, everything you do is recorded, evaluated, and channelled into a rating.
The month since the previous meeting in July had been a positive one for investors willing to take risks. Thus, the optimistic risk stance of our team paid off. It is therefore not surprising that the team remains optimistic.
In the beginning of July our Investment Committee held its monthly meeting. Despite a largely negative month on the markets, our risk stance has hardly changed relative to the previous month.
Editorial: Gerold Permoser, CIO and CSIO of Erste Asset Management, comments on the topic of this issue.
Lasting Words: “Everything used to be better. What is plastic today was natural rubber back then,” says Gerold Permoser, CIO and CSIO of Erste AM.
Positive opportunities still outnumber the negative ones on the capital markets – that was the conclusion of our Investment Committee. Our willingness to take risks is still optimistic and also moderately higher than in April.
On 3 April, we held our monthly Investment Committee meeting. Only three weeks after the previous one – three weeks that were tightly packed with issues, as we can see in the performance data of the most important asset classes. Equities and high-yield bonds have lost value, whereas Eurozone government bonds and emerging markets bonds have recorded gains. An upside-down scenario, compared to previous months.