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.
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.
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.
Analysis of the fall in the price of oil
The price of West Texas Intermediate crude, closed last 19th April 2020 at – $ 37.63, something that seemed impossible. It has never closed negative at maturity before. The Price on the spot contract was also negative, due to the lack of storage
The importance of liquidity in fixed income vehicles
One of the most important decisions we must make when implementing our vision in an investment portfolio is to choose between traditional mutual funds or exchange-traded funds, better known as ETFs.
Risks of investing in gold in times of crisis
Gold is considered by many investors to be the perfect safe-haven asset during an economic recession or crises
Investment in fixed income against Coronavirus
The worldwide spread of the COVID-19 virus (coronavirus) in recent weeks has led to strong movements in the fixed-income markets. The possible impact of the new virus on the world economy (its precise dimensions are still unknown) and a marked drop in oil prices (caused by the announced increase in production by Saudi Arabia) have pushed investors to take refuge in developed government bonds instead of high-yield corporate bonds; the latter are more sensitive to the economic cycle and registered price drops of around 10% in the last two weeks.
Commodities as an investment alternative
The commodities market is probably one the least known and most unpredictable for the majority of investors.
Is there an opportunity with equities?
Only last summer did we mention, with a hint of irony, the “imminent collapse of equities” based on a deluge of headlines and news that pointed to an impending market correction.
Consequences for investors of monetary policies
After the Great Recession (2008-2009) until now, the main central banks have established ultra-expansionary monetary policies to combat the extreme de-inflationary pressures resulting from excessive economic indebtedness , the fall in labor force growth (demography) and technological progress.
United States consumer confidence as a leading indicator of recessions
In the last 50 years, the United States economy has suffered a total of seven recessions. Each of them was preceded by a drop in consumer confidence in the world’s largest economy, specifically of the indicator’s one-year moving average.
In the current environment, should I sell or keep my investments?
It is not surprising that this climate generates doubts or reflections, and this question seems valid: Should I keep my investments or should I sell and leave? In reality, there is no simple answer since there are nuances and opportunity costs that imply different responses depending on the investment profile.
The importance of diversification in debt environments
On 23 September 2019, the world’s oldest travel agency, Thomas Cook, announced that it had ceased trading and the company went into liquidation. We’ve recently seen similar cases with Sears and Toys “R” Us. The high cost of financing in debt environments reminds us of the importance diversification has for investors. There are usually many […]
How to invest in dollar fixed-income today, with an eye to the future
On this occasion we would like to analyze the possibility of investing, with an eye to the future, to take advantage of forthcoming opportunities in dollar fixed-income.
Protect the profitability: discover why our clients come first
We present a success story. Find out how our fixed income portfolio managers – with our clients as the main focus – made the best financial decisions to protect the profitability on their portfolios.
Oil and geopolitical risk
Geopolitical risk increases affecting the price of certain commodities in the short term, although its long-term influence, is very low we do not advise basing investments on it.
Are we facing the imminent collapse of equities?
We are actually reading, in websites specialised in financial activity, about the imminent collapse of the equity indices or the divergence between the macroeconomic situation and the U.S. indices, which are close to record highs. What future is there for equities?
Structured products linked to interest rates
Range accruals are undoubtedly among the most popular interest-rate linked structured products. They are worth looking into if you want to receive a regular interest payment above market rates, linked to changes in interest rates.
Change of trend in the price of silver
Although the price of silver may not change its trend, there could at least be an upturn that may drive the price up from the current 16 dollars an ounce to 25 dollars per ounce within a year.
Seven tips for investing successfully in a start-up (Venture Capital I)
Newly created emerging companies, start-ups are a vital part of value creation in the economy and make a positive contribution to society.
The Federal Reserve facing the loss of economic dynamism
Preliminary US activity indicators point to this loss of economic dynamism in the U.S. occurring in the second half of the year.
How to invest in different currencies
Private Banking clients are increasingly more interested in investing in different currencies. Structured products offer solutions to materialise this type of investment idea.
Central Banks are the major players
Valuations of risk assets are very tight so the return depends more than ever on the Central Banks.
How do you reconcile financial investment goals with sustainable development goals?
In 2015, the UN adopted a Sustainable Development agenda setting 17 goals that consider in aggregate terms the social, economic and environmental approach that together seek to end poverty and hunger, protect the planet and ensure that humanity enjoys peace and prosperity.
Invest in the current socio-economic environment
Structural changes in the socioeconomic environment cause changes in the levels of central bank rates
How can investors avoid financial repression in euros?
The European Central Bank ruled out raising official rates during 2019, a phenomenon is known as financial repression
How to release cash through changes between US Treasury bonds?
The yield offered by thirty-year US treasury bonds reduces progressively with respect to the return provided by the Fed funds rates
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
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.