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.
Investment strategy against the uncertainty surrounding coronavirus
During the last days, we have witnessed an increase in the uncertainty surrounding coronavirus and its possible effects on the population and the world economy.
Economic situation after the first months of 2020
The markets ended January with corrections affecting risk assets, despite optimism over the signing of an initial trade agreement between USA and China, improved growth prospects and central banks committing to accommodative monetary policy.
Impact of the coronavirus on the economy and markets
The coronavirus is generating economic and financial uncertainty. It is still too soon to have a clear understanding of what economic impact the outbreak will have in China.
The value of assets and the important role of professional investors
The main assets offer far less value over the next 10 years in terms of anticipated yield than was the case over the last decade.
The positive balance and challenges for 2020
The financial markets, supported by the actions of the world's central banks, have performed very well during 2019, which has allowed us to offer our customers very significant returns in an environment of low-interest rates and moderate economic growth.
The Federal Reserve lowers the reference rates and applies new stimuli
The Central Bank of the United States (Fed) has again lowered the reference rates for the third consecutive time during 2019. Far are the forecasts of rate hikes at the end of 2018 when our forecast was, and continues to be, that the Federal Reserve won't be able to upload them for a long time (years) and there is still a long way down.
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.
Investors are holding fire from the central banks
Somewhat surprisingly, we're still seeing global investors paying an inordinate amount of attention to the decisions from the central banks in general and the Federal Reserve in particular.
The Argentine authorities seek to extend the maturities of government debt
The Argentine authorities seek to extend the maturities of more than 100 billion dollars of government debt, which includes over 50 billion of the International Monetary Fund (IMF).
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?
The Federal Reserve cuts rates for the first time in ten years
Las autoridades monetarias estadounidenses han recortado un 0,25% las tasas oficiales de la mayor economía mundial, situando el precio del dinero en el rango 2,25% - 2,00%.
The global economic deterioration forces to lower the reference rates
The global economic downturn has once more obliged the U.S. Federal Reserve (Fed) to change its monetary policy and begin to cut its official rates.
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.
The probability of recession in the US increases significantly
Based on the Federal Reserve Bank of New York index, the probability that the United States will fall into recession in the next twelve months has increased significantly.
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 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
The 3 key outcomes from the G20 summit
The Group of Twenty (or G20) is an international forum, made up of the world’s main developed and emerging economies. In total 19 countries and the European Union.
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.
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.
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.
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.
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.
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.