Erste Asset Management

„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
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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.



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This document is an advertisement. Unless indicated otherwise, source: Erste Asset Management GmbH. The language of communication of the sales offices is German and the languages of communication of the Management Company also include English.

The prospectus for UCITS funds (including any amendments) is prepared and published in accordance with the provisions of the InvFG 2011 as amended. 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 conjunction with the InvFG 2011.

The currently valid versions of the prospectus, the Information for Investors pursuant to § 21 AIFMG, and the key information document can be found on the website under “Mandatory publications” and can be obtained free of charge by interested investors at the offices of the Management Company and at the offices of the depositary bank. The exact date of the most recent publication of the prospectus, the languages in which the key information document is available, and any other locations where the documents can be obtained are indicated on the website A summary of the investor rights is available in German and English on the website and can also be obtained from the Management Company.

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N.B.: The performance scenarios listed in the key information document are based on a calculation method that is specified in an EU regulation. The future market development cannot be accurately predicted. The depicted performance scenarios merely present potential earnings, but are based on the earnings in the recent past. The actual earnings may be lower than indicated. Our analyses and conclusions are general in nature and do not take into account the individual characteristics of our investors in terms of earnings, taxation, experience and knowledge, investment objective, financial position, capacity for loss, and risk tolerance.

Please note: Past performance is not a reliable indicator of the future performance of a fund. Investments in securities entail risks in addition to the opportunities presented here. The value of units and their earnings can rise and fall. Changes in exchange rates can also have a positive or negative effect on the value of an investment. For this reason, you may receive less than your originally invested amount when you redeem your units. Persons who are interested in purchasing units in investment funds are advised to read the current fund prospectus(es) and the Information for Investors pursuant to § 21 AIFMG, especially the risk notices they contain, before making an investment decision. If the fund currency is different than the investor’s home currency, changes in the relevant exchange rate can positively or negatively influence the value of the investment and the amount of the costs associated with the fund in the home currency.

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It is expressly noted that this communication does not provide any investment recommendations, but only expresses our current market assessment. Thus, this communication is not a substitute for investment advice, does not take into account the legal regulations aimed at promoting the independence of financial analyses, and is not subject to a prohibition on trading following the distribution of financial analyses.

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