Economy

Weekly Keys: What is happening this week?

Volatility continues to decline thanks to positive news about vaccines and despite some worrying macroeconomic data.

What does ‘Global Industrial Classification Standard’ mean?

Is Tesla a technology company? Or is it a car assembly company? Is Philip Morris a staple consumer goods company or a discretionary goods one? Are MasterCard and Visa in the same sector as JPMorgan and Citigroup, or do they belong with the group of companies like Apple and Microsoft? What sectors do Twitter, Google and Walt Disney belong to? The answers are at the end of the article.

Understanding Range Accrual

In the past, we have explained some of the most common structured products in the industry, the reverse convertibles. Continuing with this topic, in this article we explain what a range accrual is.

The evolution of socially responsible investing

Surely you have already heard about socially responsible investing. The demand for investments that are more sustainable began at the end of the last century and the adaptation of companies to this concept is constantly evolving.

Profitability in the current situation

In the current crisis, the fall in economic activity is only comparable in magnitude to a great depression or one of the world wars. Clearly the background situation is not the same since we think that some of that economic activity will recover when the pandemic ends; although the reality is that we do not know for sure when it will happen, and we must bear in mind that companies must be able to survive in these conditions until then.

Market outlook: October 2020

Main milestones this month: The second wave of Covid-19 will slow down to a greater or lesser extent an economic recovery which will nevertheless continue, supported by fiscal and monetary stimuli and the foreseeable arrival of vaccines in the spring of 2021. And much more.

10 interesting facts about the financial market that you did not know

¿Sabías que el valor de capitalización de Netflix es similar al valor de capitalización de la Bolsa de México? Aquí encontrarás esta y otras curiosidades sobre el mercado financiero que todavía no conocías.

What are blue bonds?

Today, most of the financial world knows what green bonds are, but it is still unknown what blue bonds are. So, what are blue bonds?

Market outlook: September 2020

Main milestones this month: The economic recovery should follow the expected path thanks to the fiscal and monetary stimulus measures, and the foreseeable arrival of vaccines. The authorities will avoid general lock-downs as much as possible, unless there the health systems are once again overwhelmed. The US is expected to take two years and Europe slightly longer to recover their 2019 GDP levels, while Latam and the European periphery could take at least three years. And much more.

The role of central banks

Since the onset of the economic crisis triggered by the Covid-19 pandemic, the leading central banks have taken an important role: they have taken the decision to drastically increase their balance sheets by pumping liquidity into the system, so restoring the confidence of most analysts and investors.

How to invest in currencies

In a context of predictably very low long-term returns on the main assets (both financial and non-financial), many investors are turning their attention to currencies as an additional source of profitability or an opportunity to diversify their investments. But how is the best way to invest in currencies?

Five top advantages of the discretionary mandate for investors

There is a very large universe of portfolios and investing options at the moment. But there are major economic imbalances as well, so it is vital to ensure that your investments are managed efficiently. Here are five top advantages of the discretionary mandate for investors.

Which portfolios should an investor buy right now?

At the moment, there is a large universe of portfolios and investing options and a major economic imbalances as well, so which portfolios should an investor buy right now? Nowadays, it is vital to ensure that your investments are managed efficiently.

What is carry in fixed income?

When we buy a bond that receives a positive coupon regularly and hold it in the portfolio, we see how, over time and even without changes in the bond’s price, the portfolio’s value creases. This increase is the result of coupons that the bond pays into the account regularly. This increase is called carry from the investment.

The disparity of the financial markets

Since the economic crisis triggered by the coronavirus began, with the sharp falls in the financial markets in March, we have witnessed a very significant recovery in the most efficient and flexible geographies, as is the case of the United States, Britain and Switzerland. The same has not occurred in weaker geographies, as is the case in many emerging economies or even some European ones.

The reality is that this substantial improvement in the world’s most important financial markets contrasts significantly with the economic reality of their economies. Economic expectations have improved substantially, but actual economic data remains very depressed.

Market outlook: August 2020

Main milestones this month:
Uneven Covid-19 situation: more flare-ups in the summer than expected but good news on the immunisation front with some vaccines likely to be ready earlier than anticipated.
Selective social distancing measures could be implemented to try and avoid lockdowns in the spring.
It could take the US two years and Europe slightly longer to recover their 2019 GDP levels, while Latam and the European periphery could take at least three years.
And more

Understanding the socially responsible investing

It’s no secret that socially responsible investing now occupies centre stage amongst investors and asset managers. How can we implement socially responsible investing processes?

Follow up with the market news online

The new Markets section is accessible from the homepage of www.bbva.ch. With a single click, you can access a complete panel of shares, stock indices, currencies and major market movements.

Market fluctuations in August

Historically, the month of August has been associated with volatility. Some attribute this to the low levels of trading on the market, which accentuate the fluctuations in asset prices. The truth is, though, that a record number of events with an impact on the markets have occurred in this month.

Commodities performance during 2020 second quarter

The second quarter has seen a strong performance by commodities.

Since the market shock in February and March triggered by two black swan events – the Covid-19 and oil crises – the asset has rebounded vigorously.

Below we compare the performance of the main commodities, the reasons for the price increases and their possible future behaviour.

Professional management of your investments

What is discretional mandate?
Discretional mandate is an investment service characteristic of Private Banking, by which the clients delegate all or part of their assets to a team of professionals. This team then manages their assets within a certain framework of action and with a specific of risk and investment objective.

Market outlook: July 2020

COVID-19 outbreaks in Europe and the difficult situation in the US and Latin America may slow down economic recovery.
The implementation of selective measures of social distancing could predominate, to try and avoid the confinements of spring.
The strength and speed of the announced economic measures (monetary and fiscal) could protect markets from the worst-case scenario.
This is a cyclical recession, with a sharp drop in supply and demand, but it will be different in nature from the 2008/09 crisis.
The European Union could approve the recovery fund in mid-July, with positive economic and political repercussions.

Valuation of the stock market against the economic situation

Due to the economic situation that we are confronting these days, it seems relevant to discuss issues of utmost importance to investors and that, for some reason, continue to cause confusion and puzzlement, even among professional investors and analysts.

How to invest in uncertain times

The first thing is to try to remain calm and not get carried away by your emotions in these volatile and complicated times, which will probably continue to condition the behaviour of the markets in the coming months.

How to control one’s emotions and avoid making hasty decisions

Periods of panic and/or euphoria bring to mind the recurring question of how to control one’s emotions and avoid making hasty decisions. There are no general recipes for this because everyone has their own personality shaped through their experience, knowledge, etc. For example, a person who likes extreme sports will have a different concept of risk than, say, someone who likes more traditional sports.

Socially responsible investing post COVID-19

One of the benefits often attributed to socially responsible investing is its strong defensive nature, something that we’ve been able to examine during the recent Covid-19 crisis. This article analyses that aspect and the reaction of investors when it comes to allocating their assets.

Market outlook: June 2020

The developed economies are gradually reopening but the downward revision of economic growth in 2020 continues for now.
There is an increasing likelihood of recovery and economic growth returning in the third quarter.
The strength and speed of the announced economic measures (monetary and fiscal) could protect markets from the worst-case scenario.
This is a cyclical recession, with a sharp drop in supply and demand, but it will be shorter and different in nature from the 2008/09 crisis.
The European Union is negotiating a recovery fund with positive political repercussions in terms of cohesion and the European project.

Is gold a good safe haven?

The first asset we think about when it comes to protecting our wealth, in a situation where the economy has entered a recession and the central banks are flooding the markets with liquidity, is usually gold.

2020 Outlook: A winning strategy

After 10 years of bull markets and one of the longest economic cycles in history, many investors refuse to think that the situation has changed; and that the most appropriate equity investment model has therefore also changed.

Medium-term value of US investment-grade corporate bonds

As a consequence of the global economic slowdown deriving from the COVID-19 outbreak, the main central banks have set their rates back to 0% or negative; and they are promising to leave them at this level in the coming years to support the sustainable recovery of economic growth.