News
Also: we have to wait for the stock market capitulation, the Fed has to stop, no worries about Dutch banks and more.
Sustainable investing in tough stock market times
The energy crisis, coupled with soaring inflation and severe recession fears, has hit sustainable investors harder this year than investors who have less of an eye for excellent ESG scores. However, this is no reason to doubt the sustainable investment thesis now. On the contrary, the opposite happens. Read the special IEXProfs ESG E-magazine.
Waiting for the capitulation
“You probably won’t have to turn on the TV for a Halloween horror movie in the coming weeks. Just follow the financial markets, they’re creepy enough.” Aegon AM bond investor Hendrik Tuch expects a last sharp decline of the bags.
It really could be worse
This bear market has a medium duration, with a low drawdown pic.twitter.com/zp20dPFAU4
– Jeroen Blokland (@jsblokland) October 22, 2022
What are the inflationary implications for key investment trends?
Schroders fund managers narrate how they see the future of four key investment trends if inflation remains high for a long time to come.
Fed rate hikes go too fast
This is what Ben Carlson says in a very good column. His advice: “Take a breather and see how things move for a couple of months. You can’t expect a $ 23 trillion economy to stop in an instant and change course.”
Yen continues to fall
Takatoshi Ito op Project Syndicate: “Many argue that Japan’s attempts to raise the exchange rate are thwarted by its central bank, which remains committed to extremely accommodative monetary policy. But the exchange rate is not part of the Bank of Japan’s mandate and the main drivers of the the depreciation of the yen is beyond the control of Japanese politicians. “
Read also: Land of the rising sun but falling currency.
Not all bonds have underperformed this year
Local currency emerging market debt held up this year. Morning Star gifts top 5 EMD funds.
Active vs Passive
The returns of IEX Fund 40 (actively managed mutual funds) and IEX Index 20+ (ETF).
The real economic problem
As long as the constraints in the production chains continue, there will be no economic recovery. light the article on Yahoo Finance.
This is obviously a positive sign
Global container freight rates hit a 22-month low this week, down 69% from the peak. Still over 2 times higher than pre-pandemic levels but continuing to move in the right direction. pic.twitter.com/RuVtXQo2pS
– Charlie Bilello (@charliebilello) October 22, 2022
New phase of Sino-American relations
What does Xi’s reconfirmation mean for relationships? CNBC analysis.
#ChinaXi Jinping has installed a new leadership group of fierce loyalists and eliminated the last remnants of pol rivalry from the highest ranks of the Communist Party, cementing power for life in a dramatic shock. https://t.co/D39XFiPFfz pic.twitter.com/K5ResCc0Pq
– Holger Zschaepitz (@Schuldensuehner) 23 October 2022
Investors are clearly unhappy with King Xi’s new mandate
It goes well with HangSeng. Now trade with a PE below 6x and a 4.5% dividend yield … pic.twitter.com/jmXS5HbzMM
– ldaalder (@ldaalder) October 24, 2022
Markets don’t like XI a tighter grip on China and poor economic numbers pic.twitter.com/WKD6oU589n
– Corné van Zeijl (@ equity analyst) October 24, 2022
???? Foreign investors accelerated the sale of Chinese A shares as Beijing held Party Congress twice a decade, dumping 29.3 billion yuan ($ 4.1 billion) of shares last week via trade links – Bloomberg pic.twitter.com/Ma7R4l1Bx6
– Christophe Barraud ???? (@C_Barraud) October 24, 2022
The great international power struggle for chips
Computer chips will soon no longer be scarce. And that’s good news for anyone looking to buy a television, car, game console, or electric toothbrush. The problems are not over. Crisps have become the focal point of a great political power struggle (see story above), which everyone wants to win. RTL Z has one a video dedicated to.
Are you afraid of the stock market consequences of a recession?
This is not necessary, as some sectors can still survive, reports Belegger.nl.
Don’t worry about Dutch banks
High inflation, rising interest rates, the war in Ukraine and the possibility of a global recession – to say we are in a turbulent financial period is an understatement. Nonetheless, Dutch financial institutions are in good shape and have solid reserves. This is evident from the Financial stability overview (OFS) by De Nederlandsche Bank.
Technology is alive!
The tech sector may be out of favor right now, but we believe there are plenty of investment opportunities to pursue, especially in private markets. https://t.co/nQ1J7ANgM2 pic.twitter.com/XFq5YhRXhX
– Pictet Asset Management (@PictetAM) 21 October 2022
Of Publishers of IEXProfs is made up of several journalists. The information contained in this article is not intended as professional investment advice or as a recommendation to make certain investments. Publishers can hold positions in one or more of the listed funds. Click here for an overview of their investments.
