„I just can’t get enough“– Update from the Investment Division

„I just can’t get enough“– Update from the Investment Division
„I just can’t get enough“– Update from the Investment Division
(c) unsplash
Share post:

What’s happened since yesterday ?

In a hit from 2011 the Black Eyed Peas sang “I’m addicted wanna jump inside your love, I wouldn’t wanna have it any other way, I just can’t get enough”. Governments and central banks also seem to have fallen in love with stimulus packages and stimulus measures and the economy can’t seem to get enough of them.

Yesterday the Republicans unveiled a new USD 1,000 billion stimulus package. The Republican majority leader in the Senate, Mitch McConnell, justified the package by saying “the American people need more help”. The plan provides for a round of one-off payments of USD 1,200 to most Americans. In return, the federal government’s temporary contribution to unemployment benefits of USD 600 per week will first be reduced and then stopped. This program is to be replaced by wage replacement payments of 70%. The package also provides for support measures for small and medium-sized businesses.

However, there is a dispute between Republicans and Democrats over this new aid package, and it appears that this is already the first shadow of the upcoming presidential election campaign.

Yesterday the markets reacted largely positively to the presentation of the planned stimulus package. The US leading index, the S&P 500, rose by 0.7%. Most Asian markets also posted overnight gains. Gold took a breather yesterday, and currently stands at around USD 1,930. Since the beginning of the year, the precious metal has risen by almost 28% (in US dollars), making it one of the best performing asset classes in 2020.

The US dollar continued its downtrend against the euro yesterday. The US currency reached a high for the year against the euro in March at around 1.07. After that, however, the euro appreciated significantly and currently stands at around 1.17.


Legal note:
Prognoses are no reliable indicator for future performance.



Leave a comment Required fields are marked with *

Your email address will not be published. Required fields are marked *

Legal disclaimer

This document is an advertisement. Unless indicated otherwise, source: Erste Asset Management GmbH. Our languages of communication are German and English.

The prospectus for UCITS (including any amendments) is published in Amtsblatt zur Wiener Zeitung in accordance with the provisions of the InvFG 2011 in the currently amended version. Information for Investors pursuant to § 21 AIFMG is prepared for the alternative investment funds (AIF) administered by Erste Asset Management GmbH pursuant to the provisions of the AIFMG in connection with the InvFG 2011. The fund prospectus, Information for Investors pursuant to § 21 AIFMG, and the key investor document/KID can be viewed in their latest versions at the web site www.erste-am.com or obtained in their latest versions free of charge from the domicile of the management company and the domicile of the custodian bank. The exact date of the most recent publication of the fund prospectus, the languages in which the key investor document is available, and any additional locations where the documents can be obtained can be viewed on the web site www.erste-am.com.

This document serves as additional information for our investors and is based on the knowledge of the staff responsible for preparing it at the time of preparation. Our analyses and conclusions are general in nature and do not take into account the individual needs of our investors in terms of earnings, taxation, and risk appetite. Past performance is not a reliable indicator of the future performance of a fund.