The ordinary becomes special – Update from the Investment Division

The ordinary becomes special – Update from the Investment Division
The ordinary becomes special – Update from the Investment Division
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What has occurred since yesterday ?

Sometimes the ordinary becomes something special. To prove the validity of this heuristic, we will use the database of our Bloomberg terminal once again. On the 24,060 trading days of the leading US index S&P500 since 1928, the average daily change has been +0.02%. In contrast, for almost a month (since 24.02.20 to be precise) there have only been three days where the index moved less than 1.7%. Yesterday was the first ordinary day in a long time, with the market closing up by only 0.47%. To put it another way: “at least yesterday the financial markets were a little slower again”.

European government bonds were also consistently up yesterday. Following the announcement of additional purchase programs by the European Central Bank, risk premiums for bonds from the peripheral countries, especially Italy, significantly declined. Gold also made gains yesterday. Crude oil rose by more than 21%, which was the highest daily gain ever (markets did not slow down everywhere).

What will we be observing in the coming days ?

At this point, today we would like to refer to the excellent outlook from our colleague, Gerhard Winzer, in the latest blog “Coronacession” (English version should be available shortly and will be uploaded on Sharepoint).

Our dossier on coronavirus with analyses: https://blog.en.erste-am.com/dossier/coronavirus/

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

DOSSIER

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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 within the section mandatory publications 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. A summary of investor rights is available in German and English on the website www.erste-am.com/investor-rights as well as at the domicile of the management company.

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