Brexit delayed! | Flow Traders Investment Competition | Week 22

Another overall positive week for the indices. The S&P 500 rose by 1.55% while the Dow Jones rose by 1.33%. Also the FTSE 100 rose by 2.48% and the Nasdaq rose by 1.78%.

Before we move on to the events around the world and the developments in the investment competition, we would like to make an announcement. Namely, we want to remind you that naked short selling is not permitted in this competition. In other words, it is not allowed to short sell without first borrowing the relevant share.

In Europe, Theresa May wants to delay the Brexit to June 30th. Even though not everyone agrees with this, it is likely this delay will be accepted by EU. Time is short, as the current deadline is set at April 12th, this coming Friday. On Wednesday, the EU will decide whether they will accept this extension.

In the US, the job market seems to have come back to life after a disappointing month in February. However, some economists have still not changed their negative outlook on overall growth. That is, in the case of an economic downturn, job growth tends to be an indicator that changes a few quarters later, meaning it is a lagging indicator.

There are disagreements between the White House and the Federal Reserve in the US. That is, Trump seems to disagree with the Fed’s policy up until now and has proposed that Herman Cain should be the next governor of the board. Also, he wants to nominate Stephen Moore as a new member of the board. Both these candidates are known to have praised the president’s policies and share his views.

In the competition, Hermanszoon capital rose one position due to their gains on Argan and BE semiconductor. Also, they sold the biotech company Galapagos for a profit. Meanwhile, Merx profited from their investments in a DAX turbo and John Laing, from which they received a dividend. Primus has benefited from their positions in Nvidia and Ab InBev. This has led to them rising by one place in the ranking.


Written by Hazel Alberts