Turning the corner of another month, we review the current Trend Phases among asset classes.
- The concentration to the Bear Phase of late has decreased significantly during the last month – now standing at 23%.
- Commodities are still depressed.
- Emerging Markets equities have to a large extent moved into Recovery Phase, with US equities somewhat stronger.
- Fixed-Income is toppling – in Warning or Weakness.
For details check the Trend Phase Report.
Given recent market action – which asset classes are currently overbought/sold?
- CO Energy is slightly extended to the downside at -1.0.
- FI EU Medium-term Govt Bonds and EQ US Technology on the top-side.
For full details check the Overbought/Sold Report.
Financial Factory has been accepted as a member of Swesif, the Swedish forum for sustainable investment.
Swesif brings together the forces working for and with sustainable investment in Sweden. Swesif has ambitious long-term goals:
- To increase knowledge about sustainable investment.
- Be a network and a meeting point for the exchange of knowledge and experience.
- Contribute to relevant statistics on sustainable investment in Sweden.
- Be a channel to the legislative work within the EU through the membership in Eurosif.
- Actively participate in public debate.
By being a member of Swesif we contribute to awareness and integration of ESG-topics (Environmental, Social, Governance) among investors and investment managers.
For more information about our work in the ESG-area contact Ulf Björkman.
We will attend a seminar ‘Beyond Financial Returns – The new world of sustainable investing’ arranged by The Swedish House of Finance (SHOF) and the Mistra Center for Sustainable Markets (MISUM).
An increasing number of investors are concerned with the wider impact of their investment decisions, above and beyond the financial returns generated. Large institutional investors want to make sure their potential clout has a positive impact on society at large, on the environment, and on corporate governance. Public and semi-public institutions explicitly invest to generate social, environmental or economic benefits. How is this impact measured and how is sustainable investing, broadly speaking, best organized?
The seminar will be held on November 9, 2015, in Stockholm, Sweden. We will report possible points of interest.
Links: Swedish House of Finance, Mistra Center for Sustainable Markets
Given the recent market turmoil, we check the current Trend Modes among asset classes.
- The majority of asset classes are now in Bear Mode – amounting to 61%.
- Emerging Markets equities are particularly depressed.
- A few US Fixed-Income asset classes are in Bull Mode.
For details view the Trend Mode Report.
We look at the current trend status among asset classes at the halfway point of 2014.
- The Bull Mode concentration is persistently high. The current reading is 73%. No pure beta asset class is either in Weakness or Bear Mode. For details check the Trend Mode Report.
- Even though a majority of the asset classes are in Bull Mode, the trend strength is not particularly short-term extended. View the current situation in the Overbought/Oversold Report.
- Turning to volatility, the Variance Risk Premium report for EQ US Large Caps shows a situation of “Caution” among equity investors. However, digging deeper, the cautionary stance is more a result of seriously low realized volatility as opposed to elevated implied volatility.
Profit Protection Overlay – protect profits in
- EQ US Technology, QQQ, roll #options SEP14 86 calls to SEP14 92 calls.
Click for more details regarding the Profit Protection mechanism.
- The Bull Mode concentration is still high at 55%.
- Emerging Markets equities have all left the Bear.
- Fixed-Income asset classes are generally in Bull Mode, despite a year of decreasing US QE support.
For details check the Trend Mode Report.