Rietumu Group specialists have prepared a review of the profitability of investment funds of Rietumu Asset Management in April. The review includes an analysis of key economic indicators, the monetary policy. It provides comprehensive information on the situation on stock markets, bond, currency and commodity markets. The review is accompanied with extensive comments from the experts.
Start of the year was successful for American companies. S&P 500 companies delivered the best quarterly earnings growth since 2011 year. The earnings grew in all sectors except telecommunications. The biggest contributor was energy sector that recovered from previous year slump. Nevertheless, stock valuations are still significantly above historical averages.
“April was characterized by a steady development of financial markets. Gradual FED’s monetary policy normalization, Trump heading for big struggle on reforms, quarterly corporate financial reports and fresh economic data failed to stir up financial markets”, say the RAM experts.
“Oil prices declined as raising crude oil stock and production in the U.S. has soured investors’ sentiment. Moreover, slowdown in construction activity in China and disappointing Trump’s performance influenced industrial metals prospects. In the short-term commodities demand is tightly connected with developments in China”, note Rietumu Group specialists.
“Despite geopolitical risks weighting on the world, stock market got close to the historically low volatility level at the end of April. If low volatility and raising corporate earnings prevail in the next quarters, high stock valuations will normalize. However, it seems that many investors undervalue possibility of a shock. As a result, the future may bring a wider spectrum of attractive investment opportunities”, finalized the experts.
The overview of RAM and relevant commentaries of experts can be found
here.
Rietumu Asset Management (RAM) is part of Rietumu Bank, the leading private bank in Latvia. The company provides professional asset management services. RAM’s products and services are intended for a wide range of investors and are designed to meet the specific demands and needs of each customer. In the current market conditions, RAM’s specialists offer their customers the ability to reach an effective yield to risk ratio. DISCLAIMER: This overview (including any attachment (-s)) does not constitute a request, offer, recommendation or invitation of any kind to buy, sell or redeem any financial instruments or to conclude and/or to perform other transactions of any kind. The authors of the information presented in this overview, as well as JSC “Rietumu Asset Management" IMF, registered in the Commercial Register of Republic of Latvia on January 29, 2014, registration number 40103753360, legal address: 7 Vesetas Street, Riga, LV-1013, Latvia, hereinafter referred to as “RAM” , both together and individually, are not liable for possible use of the information presented in this overview, including any direct or indirect damages (including lost profits), as well as any penalties. Evaluations, opinions and forecasts presented in this overview are based solely on the RAM’s specialists' conclusions regarding financial instruments and issuers considered in this overview. While the information contained in this overview is obtained from sources believed to be reliable, the RAM does not guarantee its accuracy and completeness. Any of your investment decision should be fully based on your assessment of your personal financial circumstances and investment objectives. The RAM draws your attention to the fact that transactions in the securities and financial instruments market involve risk and require appropriate knowledge and experience. Eleonora Gailisha Mass Media and Public Relations
Phone: +371-67020506
Fax: +371-67020563
E-mail:
[email protected]
