Weekly Newsletter #19/2015

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The dollar sank and U.S. stocks fell to a one-month low after data on jobs and productivity added to concern economic growth is not robust enough. U.S. crude stockpiles fell by 3.88 million barrels last week while most analysts predicted an increase in supplies. Refineries operated at the highest rate in four months as imports slipped to a one-year low. Raw-material prices have rebounded since reaching a 12-year low in March as crude rallied, the dollar fell and speculation increased that China may bolster economic stimulus. See also our chart of the day!

So what is the big investment picture now? Investors take profits and rotate their money from the recent top gainers such as bonds and equities to laggers or losers such as energy and industrial commodities. Markets are still driven by huge liquidity from central banks around the world. Currently investors weigh every word from central banks particularly from U.S. Fed which is the largest player in this game. Both global growth and inflation are low, U.S. growth is slowing down.

Erwin Lasshofer and his INNOVATIS team still sees no need or reason for U.S. Fed to make any U-turn soon. And for a large market correction or crash it takes a lot more anyway. It takes the unexpected. Thus is important to be flexible, to have access to a large range of investment solutions and to manage your portfolio actively. For this reason INNOVATIS offers Managed Accounts at preferred partner banks or can deliver a managed strategy as a Managed Index Certificate to your home custodian.