The Winner is… | Flow Traders Investment Competition | Week 35

An overall positive week last week, with some uncertainty about possible rate cuts by the Federal Reserve! The S&P 500 went up by 1.97% last week while Nasdaq composite rose by 2.18%. Also, Eurostoxx 50 rose by 1.49% and the FTSE 100 rose by 1.70%.

In the US, it was Independence Day last Thursday. During his speech, Trump placed an unusual amount of emphasis on the military. The display of jets and tanks in the parade cost millions, putting the president under criticism. He was also accused of politicizing the day. On a different note, the US jobs report came out. The number of jobs added in June was well above expectations. This is in contrast with the low job numbers in May, when only 72000 jobs were created. In June, there was an addition of as much as 224000 jobs. While this is of course good news, it has led to some uncertainty about the interest rate, with some concern that, because of the employment report, the Federal Reserve will choose not to cut rates. However, while it may not be a very large one, chances are that the Fed will still choose to cut rates in July as they have already signalled that there will be a cut.

In Europe, Boris Johnson is still the frontrunner to become leader of the Conservative Party and thus Prime Minister of the UK. Voting on the two remaining candidates for the party’s leadership began on July 6th. The outcome will be known in the fourth week of July. Meanwhile, Greece may also be heading towards a change in leadership. The Greeks voted last Sunday. Election results are not in yet at the time of writing, but polls show that New Democracy will beat Syriza, the left-wing party of current Prime Minister Alexis Tsipras.

The investment competitions have come to an end! Last Thursday, the winners of the Flow Traders investment competition as well as the B&R Beurs investment competition were determined. In total, 21 investment groups made a profit this year. In the final week, there were some developments. Audacity rose by one place as they profited from their investments in Exelon Corporation, FactSet Research, and Take-Two Interactive. Hermanszoon capital had some success in their investments in MSCI USA Small Cap ETF and Thermo Fisher Scientific. Merx, however, lost on their investments in Turtlebeach and an Alibaba turbo. In the B&R Beurs competition, Basura gained on MSCI World Health Care and World Technology ETFs.

After another eventful investment year, our yearly competition has finally come to an end. It has been an exciting year with lots of interesting investment opportunities, which some groups took full advantage of, while others failed to pick the right ones. To keep everyone excited, the top 3 of the competition will remain a secret until coming Thursday, where the winner of the competition will be announced. Find out who won this Thursday!

Written by Hazel Alberts

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