China and Diversification

Posted by Josep Duran on Sep 15, 2020 5:48:24 PM

China is a growing part of the world's economic pie. In fact, it is already the largest economy in terms of GDP adjusted for purchasing power parity, according to data from the International Monetary Fund.

Largest economies by PPP GDP in 2020 according to International Monetary Fund 

 

In any case, when we talk about geographical diversification, China does not always have a relevant weight in investors' portfolios, as we see in the graph for a portfolio created in the US.

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Topics: China, Diversificación

Bear Market or "Flash Crash"?

Posted by David Gassó on Aug 26, 2020 11:28:15 AM

We can look for many comparisons between the crisis of 2007 and the crisis of 2020. One of them, the duration and intensity of the fall and the time of subsequent recovery, is striking.

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Topics: Estados Unidos, Recesión, Renta Variable

The ghost of Inflation

Posted by Josep Duran on Aug 13, 2020 9:45:04 AM

As a result of the Covid-19 crisis in March, investors came out on top of inflation-linked bonds (TIPS): they thought that when a forced crisis in demand arrived, deflation could occur that would harm the value of their investments in TIPS.

TIPS money flows

Recently, we are seeing how the real interest rates of the US economy are on negative ground.

In inflationary crises, the TIPS adjust to inflation and the interest rate they bear is attractive. On the other hand, in deflationary crises, the TIPS usually imply negative returns, since the principal and the coupon of the bond go down when the price level goes down.

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Topics: Economía, Estados Unidos, Inflación, Renta Fija, FED, Flujos

Europe, Where Are The Earnings?

Posted by Josep Duran on Aug 7, 2020 10:44:26 AM

European companies, which were already very affected before the pandemic, are suffering a real drain in terms of business profits: the consensus estimate points us to a drop of more than 65% in earnings.

Furthermore, unlike the American market, earnings estimates for this year are being revised downward.

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Topics: Europa

E-Trading on Lockdown

Posted by Josep Duran on Jul 29, 2020 7:30:00 AM

Recently, some trading platforms have informed us of the impressive numbers of new users created during the months of March and April.

Lockdown has caused hundreds of thousands of Americans to choose a new hobby: investing in the stock market.

 

 

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Topics: Asesoramiento Financiero

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