Newsletter dated August 11, 2016

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The crude oil price dropped 10% versus our last newsletter two weeks ago. Accordingly Gold is the sole leader on a year-to-date level now. See also our special investment blog on Gold we issued last week.

Among equities Emerging Markets has continued to gain. A closer look at local markets shows that although China rather has not changed Brazil, Thailand and Indonesia have gained significantly in both currency and local equity indices on a year-to-date basis.

There have been few financial news. The Bank of England cut its benchmark interest rate by 0.25% as expected. The British Pound is heading to all-time lows – see also our chart of the day. Overall markets continued to calm down after the Brexit shock. There are no news from US Fed if they still want to increase rates by the end of the year. In combination with the quiet holiday time the major volatility indices have come down to record lows.

Erwin Lasshofer and his INNOVATIS team expect volatility to come back soon. We still see depressed yields in bond markets and limited potential for equity markets. For clients in our Managed Account we can generate attractive returns by topping-up existing notes or finding volatility in well-selected stocks.