How do we benefit from falls in financial assets?
At BBVA in Switzerland we can provide alternatives that meet this requirement, through structured products such as ‘Twin – Win’.
The importance of diversification for investors
The debt levels of governments and companies with respect to GDP are at a record levels, something we should take into account when investing
Equity market analysis and valuations
Equity market valuations are at historically very high levels, which implies that long-term yields for investors will be lower than in the past.
Investing in sovereign fixed income: traditional bonds or strips?
The difference between a strip bond and a traditional one is that a strip is a zero coupon bond, i.e. it does not pay coupons as these are included in the price. Therefore, strip they have a longer duration. For 30Y treasury bonds the duration or sensitivity to movements in interest rates is just under 20 years, while for strip bonds with the same maturity it is close to 30.
Inheritance tax: How does it affect me?
Revenues from inheritance and gift taxes have reduced over the years; from an OECD average of 1.1% of total tax revenues in 1965 down to the present 0.4%.
How do the rate hikes affect investors?
The United States Federal Reserve has implemented further rate hikes, as it has been announcing for some time. No clear indication has been given as to how far they will continue to rise, and therefore most investors think that there will be further hikes in the remaining months of 2018 and throughout 2019.
What are profitable and socially responsible bonds?
At BBVA Switzerland, we are conscious that our main mission is to safeguard our clients’ wealth, but this objective is not incompatible with maintaining our commitment to a sustainable future. What are profitable and socially responsible bonds?
Investors and the need of searching for value
In a context where it is not easy to find undervalued assets or assets with an interesting risk return scenario, we must strive to select the right investment opportunities searching for value. BBVA in Switzerland, in line with its focus on capital preservation and capitalizing assets in the medium and long term, believes that some specific assets are still attractive to investors.
What benefit for my assets does it have to change my country of residence?
Have you ever considered moving to another country looking for a better taxation for your assets? Why are there so many cases of athletes or artists who decide to change the country of residence for the benefit of their careers?
Monetary normalisation in the US and its effects
At the end of 2015, the Federal Reserve began the process of removing the extraordinary monetary policy accommodation that it had introduced to help stimulate the economy in the wake of the 2008 financial crisis (the “Great Recession”). However, the Fed’s monetary normalisation could see this situation gradually change.
An investment made to measure for all clients
It is increasingly common for clients with knowledge of financial markets and with the intention of modulating risk according to their tolerance, to take the initiative and hire products tailored to their needs. The confidence between the bank and the clients is in this case is maximum and it seems interesting to talk about this current investment trend.
Why is United States stronger than the rest of the world?
During 2018 we witnessed a stronger divergence of behavior between the United States and the rest of the countries. The US stock market registers a revaluation close to two digits, while other markets such as emerging countries or Europe, are in negative positions.
The importance of art due diligence against counterfeiting
We all assume that counterfeiting in art exist, but to what extent is it a serious problem? Much more than we think. Many counterfeit works of art, for example a false lithograph by Miró, are sold on the Internet in small quantities, approximately $ 5,000, to numerous buyers who trust the seller’s word and do not carry out any prior investigation – ‘due diligence’ – in the works.
Consequences of the monetary policy of the Federal Reserve
Only a few months ago we commented on the process of increases in reference rates by the Federal Reserve of the United States and how this process can affect the economy and the financial markets. It may be interesting to return to the subject given the situation of some countries and the dynamics of the global economy in recent weeks.
Bonds and loans to finance green technologies
Green technologies, such as renewable energies, energy efficiency and electric vehicles, can help to reduce the impact of human action on climate change. In 2007, the European Investment Bank issued the world’s first green bonds aimed at financing and developing these technologies. In Spain, BBVA signed its first green loan in 2017, worth 500 million euros.
The peculiar year for equity
This has obviously been a peculiar year, with differentiated movements; equities have been range-bound in the US, but sustained sharp corrections in other markets.
Is it good for the stock market to lower unemployment?
The immediate answer could be that a low unemployment rate is good for the stock market.
In the last few years, the unemployment rate has registered a marked decrease in the main geographical areas and has reached historical lows. One of the questions arising from these circumstances refers to the impact of these employment rates on equity performance.
The effects of a strong dollar on the economy
During May and June we have seen a major appreciation in the USD, US Dollar, in relation to the rest of the global currencies, especially with respect to certain emerging countries’ currencies, such as the Argentine peso and the Turkish lira.
How to invest in capital protected structured products?
Structured products are interesting investment solutions that help us build an investment vehicle that exactly matches our needs from combinations of different financial assets (fixed income, equities, derivatives, etc.) Its flexibility allows us to choose the term of the investment, the underlying assets, the currency, and of course, the level of risk that we want to assume, even delimiting the capital guarantee. Learn with the financial formation of BBVA in Switzerland, how to invest in funds protecting capital.
Next steps in the Eurozone’s monetary policy
The European Central Bank’s recent meeting and its decision not to raise rates until the summer of 2019 is an excellent opportunity to perform an analysis on the next steps in the Eurozone’s monetary policy.
How do I protect my family against contingencies?
Potential family and business risks can be detected with good wealth planning, in order to protect our family against contingencies. However, without planning, structuring and organizing, we will not achieve such protection.
Are gold mining stocks an opportunity?
Historically the performance of gold mining share prices following periods in which the price to earnings paid by the American stock exchange was, statistically speaking, very high, has been excellent and a opportunity as we are going to analyse below.
The importance of US interest rates
Over the last two years, we have witnessed interest rate increases by the US Central Bank (Fed), from the levels of 0% a few years ago, to the current 1.75%. This rise of 1.75% has occurred at a lower rate than in previous periods, which may have caused us to be unaware of its importance and its influence on the global economy.
Impact of official rates on long-term treasury bonds
Investors usually believe that buying long-term US treasury bonds during a period of official rate hikes by the Federal Reserve is an unsuitable alternative. However, this supposition may not be completely true. Financial education with BBVA in Switzerland.
Investing in Classic Cars (II): Six Milestones in the History of Automotive Manufacturing
The world of collectible investing continues to boom, with classic cars in particular enjoying an excellent moment because of their international appeal and cumulative returns (+362% in the last decade according to figures published by the consulting firm HAGI, which specialises in vintage collector cars, and the latest Wealth Report from Knight Frank).
Family businesses: Why do they survive?
Family businesses can become a source of conflict between the different members making up the it. However, why are there businesses that have been very successful in generational change and others that have not? Discover with BBVA in Switzerland how a family protocol can contribute to success.
Solvency against risk of non-payment
U.S. treasury bonds act as safe-haven assets in circumstances such as deflationary crises, economic recession or shocks in financial markets. This is due to the fact that, at times such as these, investors in fixed income often reduce their investments in corporate bonds of low credit quality and, as such, high risk of non-payment. Instead, they prefer the maximum solvency of U.S. treasury bonds.
Consequences of the euro-dollar volatility
The low volatility during the first quarter of 2018 appears to have come to an end. A look at the euro-dollar (EURUSD) exchange rate shows a marked change in price after the first rate rise this year, in a decision taken by the FED in its last meeting on 21 March, while awaiting the definitive consolidation of the inflation data in the US.
The investor’s chief problem
“The investor’s chief problem, and even his worst enemy, is likely to be himself”
This phrase of Benjamin Graham (considered to be the father of ‘value investing’, is without a doubt what has stuck with me for a long time and that I try to remember often.
How to invest in an economic debt environment
At present, most economies, both developed and also emerging market, are reporting excessive debt levels compared to the past. The amount of debt in the US economy, which in turn sets the pace of the world economy, stands at almost four time the wealth this country produces (measured by it gross domestic product).