Christmas is coming up and it’s time for the weekly Flow Traders investment competition update. Markets globally plummeted again this week and the results are in: the S&P 500 ended -6.69%, Eurostoxx 200 Large -2.86%, AEX -4.17% and SHCOMP -3.01%.
In the US, last week was the worst week for equity this year with the yield curve rising with almost 5%. The major reason for this was the fear that the Federal reserve will raise the interest rate even more than the US economy can handle and adding to that the possible US government shutdown.
In the Flow Traders Investment Competition, the investment groups who hold cash are the ones on top. On the other side of the ranking Metrics Fund and Hercules are still at the bottom and we see that groups who hold tech stocks reflect their performance in their portfolio return. Merx has currently a 11% loss on their portfolio which is partly thanks to their Battery ETF. Several investment groups invested in emerging markets like China and India which also resulted in losses. A few investment groups invested in gold to cleverly hedge the market.
Valuations appear to be attractive and this might be reason to take new opportunities. The entire board wishes you a merry christmas!
Written by Adnaan Willson, Education & Career Commissioner (23/12/2018)