MoneyController

MoneyController

SHOW PROFILE

722 posts - 75.427 readings


Commodities driven by energy transition

  • 42
  • 0
  • Raw materials
Posted on 21.01.2022

Although slowly, the energy transition is beginning. This important transition phase will change both the energy market and the raw materials market. In fact, the price of certain raw materials used to produce environmentally friendly technologies has been rising for some time. Let us take a quick look at the situation, taking up some points made by Martin Hock in an article in the "Frankfurter Allgemeinze Zeitung" (FAZ). Energy transition sectors increasingly need metals The price of some metals is rising rapidly due to their use in the electric car industry. This is the case with nickel, the price of which (approaching $25,000 per tonne) has not been this high since 2011. Other metals, however, are linked to construction, such as aluminium, the price of which is rising thanks to infrastructure investments in China. The FAZ reports the opinion of Armin Sabeur, head of investments at Optinova, a specialist provider of commodity equity funds, on the subject. Sabeur points ou ...

Continue reading

How High Can Oil Prices Go?

  • 42
  • 0
  • Raw materials
Posted on 21.01.2022

The price of oil has been rising fairly steadily for some months now. But how far can the price of a barrel go? To write about this, we take up some remarks made by Flavio Ferrara on the FX Empire platform. The temporary setback in oil prices It has been seven years since WTI oil reached such high price levels: $87.5 per barrel. In the last few hours, at least two events have temporarily halted the price. The first event was an attack by a group of Yemeni terrorists on oil trucks. The attack took place in Abu Dhabi, in the United Arab Emirates, and caused a temporary squeeze on supply. The second event was the explosion of an oil pipeline from the city of Kirkuk in northern Iraq to the Turkish city of Ceyhan in the southeast of the Anatolian peninsula. The terminal at the Turkish port mainly supplies tankers bound for Europe.   Markets are betting on a rise in the barrel price How can we make sensible predictions about the price of oil? Certainly, one can consider the for ...

Continue reading

How do I invest if inflation remains?

  • 46
  • 0
  • Investments
Posted on 20.01.2022

How to invest, considering the fact that inflation will continue this year? Capital Group organised a virtual round table, during which it outlined its investment outlook for this 2022. Let's take a look at some points, based on Virgilio Chelli's report on "financialounge". Investing in an inflationary environment Capital Group experts agree that inflation will remain high this year. However, this does not mean that it will turn into a lasting phenomenon, as happened in the 1970s. If inflation stays within certain limits, some companies might even benefit from it. Experts are of course talking about companies that have 'pricing power', i.e. they are able to raise the prices of their goods and services without significantly affecting demand. In general, this happens to a company if: a) it offers successful products; b) it enjoys a strong brand; c) it provides essential products; d) it provides goods that are in high demand at the time; c) the price change doe ...

Continue reading

The world raises interest rates, China cuts them

  • 43
  • 0
  • Financial markets/economy
Posted on 20.01.2022

There is one significant exception to the trend that is driving many central banks to raise interest rates or announce that they will do so. This is China, which in word and deed is promoting an expansionary monetary policy instead. The Chinese president warns against overly restrictive monetary policies  "The global industrial and supply chains have been disrupted. Commodity prices continue to rise. Energy supply remains tight. These risks compound one another and heighten the uncertainty about economic recovery. If major economies slam on the brakes or take a U-turn in their monetary policies, there would be serious negative spillovers. They would present challenges to global economic and financial stability, and developing countries would bear the brunt of it". This is not the opinion of an American or European economist, but of the President of the People's Republic of China, Xi Jinping, at the World Economic Forum 2022, held annually in Davos. Western banks a ...

Continue reading

2022: stock markets will be more volatile

  • 40
  • 0
  • Financial markets/economy
Posted on 19.01.2022

2022 is likely to be a year of greater market fluctuation than 2021. This was written by Joseph Amato, President and Chief Investment Officer of Neuberger Berman, in one of his weekly analyses. An effective summary of Amato's outlook also appeared on "Financialounge.com" in an article by Virgilio Chelli. Inflation and monetary policy as factors of instability The first problem facing investors this year has, so to speak, two sides. The first is inflation. The shock to supply chains caused by a recovery in demand has not yet been fully overcome. At the same time, markets have been flooded with liquidity to avoid a generalised credit crisis, which would have led to a series of chain bankruptcies. Although it will be countered by monetary policies, Amato believes that inflation is set to remain above the levels of recent years, at least for this year. The second side of the first problem is new monetary policies to tackle inflation. The risk of too severe a tightening risk ...

Continue reading

Ethereum: fundamentals are good

  • 35
  • 0
  • Cryptocurrencies
Posted on 19.01.2022

For a couple of months now, the cryptocurrency world has been facing a bearish market phase. On the FX Empire platform, Federico Dalla Bona dedicated an article to Ethereum (ETH) in which he explains, however, why in his opinion the cryptocurrency's economic fundamentals are promising. The solidity of Ethereum Bitcoin and ETH prices have been on a downward trend for a couple of months now. Since the beginning of this year, the cryptocurrencies have lost 11.45% and 21.9% of their value, respectively. ETH is now worth "only" a little over $3,000. However, despite these lacklustre results, the number of users of the largest alternative cryptocurrency to Bitcoin (hence the name "altcoin") continues to grow. Dalla Bona cites some figures that speak for themselves: 68 million users, 1.2 million transactions per day and a growing number of holders. This last figure is perhaps the most important. If more and more people are still aiming t ...

Continue reading

Investing in the space economy

  • 28
  • 0
  • Investments
Posted on 18.01.2022

For some time now, space is once again becoming a place of interest not only for science, but also for economics and investors. Rolando Grandi, CFA and Thematic Global Equity Fund Manager at the investment company La Financière de l'Echiquier (LFDE), wrote about this in "finews.com". The space race is now mainly about private companies  On 20 July 1969, the Apollo 11 space mission put the first man in human history, Commander Neil Armstrong, on the moon. Rather than the beginning of a new era in the development of space research, this date is now seen as the end of the space race that had seen the United States of America and the Soviet Union facing off against each other. However, the situation has not remained unchanged since then. States have certainly invested less in space than might have been expected. Private companies, on the other hand, especially in recent years, have embarked on a real space race. Richard Branson's and Jeff Bezos' short sp ...

Continue reading

Climate tech investments are on the rise

  • 39
  • 0
  • Green economy - green bond
Posted on 18.01.2022

Investment in companies that use technology to tackle the current climate crisis is growing fast. This is shown by the consulting firm PwC, which has published a study entitled 'State of Climate Tech 2021'. Investments in climate tech are growing On 30 June 2021, investments in technology companies directly involved in the fight against climate change amounted to $87.5 billion. This is a truly astonishing figure when compared to the previous year's figure of $24.8 billion - an increase of 210%. This is good news, of course, but there are at least two points to consider, as Sam Shead points out in an article in CNBS. The first point is that resources are not allocated in the most effective way. The second point is that, despite the reported figures, the growth in investment volume could be even greater. How are investments distributed? The reason why the allocation of resources is not the most effective is that only 25% of the investment volume has been allocated to tech ...

Continue reading

Overview of three emerging market bonds

  • 39
  • 0
  • Gov. bonds and Spread
Posted on 17.01.2022

On the website "Investireoggi.it", a few days ago Giuseppe Timpone carried out an analysis of three sovereign bonds of three emerging countries, Turkey, Egypt and Ghana. Let's quickly see what conclusions he came to. Turkish bonds suffer from inflation and currency risk Ten-year Turkish bonds have fallen below $0.9 in recent days and their yields above 8%, compared to 6.32% a month earlier. The problem that has been plaguing Turkey in recent months is uncontrolled inflation, which reached 36% last month. As Timpone writes, the Turkish lira has become even more volatile than Bitcoins. This currency risk, besides translating into a real political risk, is driving many investors away in the direction of safer markets. Among these is, of course, the US bond market, following expectations of rising government bonds.  Egyptian bonds exceed expectations Egypt will certainly welcome the fact that JP Morgan will include the North African country's sovereign bonds in i ...

Continue reading

CAPE Ratio: what is it and how well does it really work?

  • 37
  • 0
  • Investments
Posted on 17.01.2022

On yahoo!finance, Sam Ro dedicated an article to a famous stock market metric, the CAPE Ratio. We also take up some of his observations in the article below. What is the CAPE Ratio? The CAPE Ratio (Cyclically adjusted price-to-earnings ratio) is an investment metric also known as the "Shiller P/E Ratio", as it was invented by Nobel Prize-winning economist Robert Schiller. It is a measure that corrects the traditional metric of the P/E (Price/Earnings) Ratio, which measures the relationship between the price and earnings of a stock or index. The correction consists of dividing that value by the average return over the last ten years and serves to neutralise interference from price fluctuations. The CAPE Ratio would therefore provide investors with a signal whether the chances of the market outperforming or underperforming are increasing. Based on what? Based on whether that value is below or above average. Reasons to doubt the CAPE Ratio Ro reports, however, on the critica ...

Continue reading

For a barbell approach in investments

  • 43
  • 0
  • Investments
Posted on 14.01.2022

There is some consensus among commentators that the markets will soon face a challenging situation. On the one hand, a slowdown in economic growth is looming. On the other, both the rise in US interest rates and the peak in inflation are approaching. What should we do in such a situation? How should portfolio asset allocation be adjusted? Yahoo!Finance interviewed Alessio De Longis, Senior Portfolio Manager at Invesco Investment Solutions, on the subject of asset allocation. The barbell strategy for dealing with market uncertainties De Longis believes that after a year and a half of such rapid market growth it is normal to see some deceleration. However, growth will remain fairly solid in the short to medium term. In fact, rather than a real deceleration, De Longis is talking about a rotation, in particular a rotation from growth and value to quality stocks, as well as from small and mid caps to large caps. This is why the expert suggests considering the barbell approach. By barbell ...

Continue reading

A look at currencies and emerging markets

  • 32
  • 0
  • Financial markets/economy
Posted on 14.01.2022

The situation in emerging markets and currencies seems to be in flux. To give an account of the situation, albeit quickly, we turn to an interesting article by Susan Mathew of the Reuters news agency. Geopolitical tensions in Ukraine weaken the rouble The rouble lost 1% against the dollar yesterday. The reason is easy to find. After the uprisings in Kazakhstan, the Kremlin has once again returned to the complex issue of Ukraine. It is no secret that the government in Moscow has massed its troops on the Ukrainian border to put pressure on the government in Kiev over the separatist conflict in Donbass. However, the US and NATO have come to Ukraine's rescue, so to speak. Russia entered into negotiations with them, but these failed. The US is therefore ready to impose new sanctions if Russia enters Ukrainian territory with its army. Brazil: tertiary sector strong, but growth threatened In Brazil, however, the real has returned to growth. The credit for this is due to data coming fr ...

Continue reading