Weekly Newsletter #13/2015

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European equity markets have rallied for the last weeks since the ECB has flooded the market with money. The ECB and national central banks started buying sovereign debt under the 19-month plan to inject 1.1 trillion euros into the economy. The Euro fell as low as 1.05 versus US dollar which is a record in 12 years. This helped the German DAX30 equity index to jump above 12’000 points which marks an all-time high. Germany’s 10-year yield fell to a record low of 0.2%. And also US 10year Treasury yields have come down to 1.9%.

Erwin Lasshofer still does not believe in rate hikes anytime soon. The ECB is currently doing quite the opposite. And the US Fed can wait considering the low inflationary pressure which is also curbed by low crude oil prices – see our chart of the day.

Crude oil prices have suffered from US-production which is still increasing – albeit at a lower pace now. Technically crude oil could be bottoming out right now. Rising tensions in the Middle East might be the catalyst for a recovery. Some analysts argue that oil storages are exhausting which might put further pressure on the market.

We focus on investments with large safety margins in this sector. Currently we find great opportunities in structured products on oil stocks with very low capital and coupon barriers. See also our offer below.