Uncertainty at the Fed | Flow Traders Investment Competition | Week 31

A positive turn for the markets last week as the Dow Jones Industrial Average rose by 4.63% and the S&P 500 rose by 4.43%. Meanwhile, NASDAQ rose by 4.03% and Eurostoxx50 rose by 3.16%.

In the US, there is speculation about where the federal reserve will decide to lower interest rates. Reasons for this include the ongoing trade war with China as well as disappointing job growth so far this year. Also, we saw downturn in inflation numbers as new consumer price Inflation data was released last Wednesday. Some analysts believe that these factors mean the Fed will start cutting interest rates as soon as next month.

Although Theresa May has stepped down as MP, it is unclear what will happen to her Brexit agreement. By the last week of July, a new leader of the Conservative party will be elected. This leader will become the new Prime Minister. At this point, the most popular contender for the position seems to be Boris Johnson. Nominations for the leadership of the party will take place on Monday. After the list of candidates has been narrowed down to two on June 20th, the two candidates will continue to campaign. Then, the party members will vote to decide which of the two will become the party’s new leader.

In the Flow Traders Investment Competition, Victoria is still in first place. Meanwhile, Porto has risen by one place to land in second place with a return of as much as 10.53%. The biggest risers are Alpha Investments and Floryn Vrouwen, who each rose 3 places to take the 12th and 13th place respectively of which the latter invested well in Spotify. Audacity gained over 40% last week on Beyond Meat and on Factset Research. Conversely, Conquistadores Capital fell 3 places to the 15th place.

In the B&R Beurs Investment Competition, Heeren XIII is still in first place, now with an overall return of 0.64% which is an increase of 0.51% compared to last week. Moreover, they are the only group to be making a positive total return in this competition. Capital Phi, on the other hand, dropped 3 places to land in 5th place. CMG Investments loses on their Uber put and last but not least Basura gains on their World Technology ETF.

Written by Hazel Alberts


B&R Beurs Investment Competition