Let’s start with a trip down memory lane: Do you remember the scenery 30 years ago – on the financial markets, and in our personal lives? The 1980s – many of the older generation are still thinking back to the “good old times”. There were no smartphones and no data kraken. Instead, we had shoulder […]
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.
Open questions about the processing and leaking of data by the social media giant have triggered a correction among technology companies. Bernhard Ruttenstorfer, fund manager of our technology equity fund, has answered questions regarding facebook et al. in this flash interview.
2017 was an excellent year for stocks. Developed markets were up more than 16% in local currencies, emerging markets almost 28%. How will the markets develop in 2018?
2017 is drawing to an end, and the bottom line is positive. The outcome is significantly better than we had expected. Since the financial crisis in 2008, the global economy has never expanded more quickly and especially concertedly than in 2017. Also, inflation has surprised on the downside, falling short yet again of the expectations held by central banks and analysts.
After years of drought, European bank shares have shown a solid performance in the year to date.
The IFO business climate index calculated by the Munich-based IFO Institute is regarded as the most important German economic indicator. At 115.1, the value released for June last week was the highest since the launch in January 1991. It was also clearly above the value that had been expected by the financial analysts on average. The signs for substantial economic growth in Germany seem favourable.
The global economy is growing moderately, inflation is low, and the monetary policy is loose. This environment supports many asset classes from bonds to equities. The political uncertainty has been absorbed rather well so far too. Will this situation last?
On 31 May the Vienna Stock Exchange Award will be celebrated and awarded to the winner. The day is dedicated to the financial centre of Austria, and the award is accompanied by numerous other events that are geared towards drawing investors’ attention to the domestic stock exchange. Erste Asset Management is one of the biggest investors at the Vienna stock exchange. In the past five years, the Vienna stock exchange has seen a clear upward trend. We spoke about the reasons for the steep upswing, possible risks, and the future perspective with Bernhard Ruttenstorfer.
After the ballots were counted on 16 April 2017, the state-run Anadolu news agency reported that “Yes” had won by securing 51.4% of the votes, which was later also confirmed by the Electoral Commission. Serious concerns were raised by the OSCE. It is also important to note that the referendum took place during a “state of emergency”. That is to say, in a highly repressive climate in which the President and the government controlled the media, jailed critical journalists and leaders of pro-Kurdish parliamentary opposition, and arbitrarily detained and prosecuted the President’s opponents. The result of the referendum has paved the way for the most controversial changes that Turkey has faced in its history.