Newsletter dated January 13,2016

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Erwin Lasshofer and his INNOVATIS team hope you enjoyed some nice holidays and had a great start into 2017!

Financial markets have started positive into the new year. There were little corporate news and we have seen some better than expected employment and growth indications from e.g. from the US and Germany. While US monetary policy has been stagnating for 2 years now the ECB is still rapidly expanding – see our chart of the day!

After the nice year-end rally everybody is wondering where we go next from here? As usual it very much depends on what investors (people) believe in. Do they believe that Trump is the best job creator that “god has ever seen” and if yes, that the US economy can afford him? Do they believe Theresa May has a secret plan to handle the Brexit? Do they believe Italy can go without structural reforms? And Greece needs no debt cut? Do they believe we never have to pay back all that debt piled up by central banks around the world?

For most questions the answer is yes. At the moment. For sure there will be some updates and disappointments which will cause market turbulences. And new questions will be asked. Those unexpected questions will confuse a lot more and cause worse turbulences. These volatility spikes typically create great buying opportunities. We design structured products accordingly and allocate funds to the identified regions, sectors and companies. Clients can benefit from our daily monitoring and active management in our managed account. Check with us at office@innovatis-suisse.com for details.