Newsletter dated May 17, 2016

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As we expected most markets continued to fluctuate sideways. The US earnings season is almost finished and we see a mixed overall picture. On average companies did not grow or not by much. However a slight majority has beaten analyst expectations.

Improving demand from Emerging Markets supports commodity prices while ECB is warning that more economic challenges should come up from here. See our market overview for increasing gold and crude oil prices as well as for flat Emerging Markets equity index.

There are no signs from US Fed or other central bank for major shifts yet. Currently markets expect a US rate hike at 50% probability by the end of the year. The US Dollar has been losing ground versus other major currencies – see US Dollar index in our chart of the day. Global central banks will try to neutralize economic shifts. First of all the US Fed would take opportunity by increasing rates if US economy actually advanced.

Erwin Lasshofer and his INNOVATIS team continue to expect sideways markets for the rest of the year. This is a great environment for yield enhancement products. Contact us for a Managed Account with full service from INNOVATIS and full control in your hand.

How a managed account works, you can find here.

If you do have a need for any of these services and products please contact us at office@innovatis-suisse.com