Flow Traders Investment Competition: A Calm Week (before the storm?)

It has been a relatively quiet week in the Flow Traders Investment Competition. The S&P 500 experienced some swings, but closed only 0.18% lower than it opened on Monday morning. Also, the Dow was fairly stable, losing only 0.5% over the week. Are equity markets cooling down or is it only calm before the storm? What we do know is that the Fed is not worrying too much about inflation in the United States. On Wednesday, they published the minutes of their meeting on the 2 May. The Fed is not aiming to increase the short-term interest rate more rapidly than was previously scheduled. Equity markets reacted slightly positive as fears for further rate hikes could pressure stock prices.

Moreover, Donald Trump has backed out of the Korean Summit which was supposed to happen in Singapore on June 12th. In a letter to the North Korean chairman Kim Jong-un, the president announced to cancel the historical meeting aimed to phase out North Korea’s nuclear programs. Trump’s reason for cancelling was the ‘tremendous anger and open hostility’ that chairman Kim had expressed in his recent statements.

In Europe, Facebook’s CEO Mark Zuckerberg answered questions from members of the European Parliament, last Tuesday. Commentators claimed that it was relatively easy for Zuckerberg to withstand the tough questions. The set-up of the hearing, where Members of Parliament could ask long multi-part questions, allowed Zuckerberg to ignore the most stringent questions when he was finally allowed to answer.

Then, the end of the Flow Traders Investment Competition is coming closer, but the top three is far from certain yet. Even though Primus made a bigger profit over the last week, Rising Investments has slightly increased their lead in the top of the competition. Whereas Primus and Rising investments seem to be quite certain of their spot in the top three, the battle for the third place is far from over. Batavia Investments has experienced two rough weeks, making them lose three spots in the ranking. With Borsa Valori and B.R.O.O.D. Beleggers sharing the third spot, a lot is possible in the upcoming weeks.

CMG Investments has managed to make the biggest profit last week. Their investment in Basic-Fit turned out to be a good one so far, as the company’s shares have increased by over 80% since their IPO in the summer of 2016.

Written by Joppe de Bruin