Blog

22nd May 2017

Copia Monday Espresso

 

 

  • Due to mounting political turmoil in the White House, the S&P500 suffered its biggest one day fall since September 2016. The heightened” risk off” tone on wall street also caused the US Dollar to continue its fall versus peers.
  • Ahead of the upcoming UK General elections, Theresa May called for a hard line on Brexit negotiations, insisting “no deal is better than a bad deal”, in her conservative manifesto.
  • Oil surged after both Russia and Saudi Arabia said they would back the extension of the OPEC-led agreement to cut output until March 2018, with WTI Crude oil closing the week above $50 per barrel.
  • Allegations of corruption surrounded Brazilian President Michel Temer, causing Brazilian stocks to sell-off sharply, with investors concerned that the highly anticipated pension reforms, which had been pledged by Mr Temer, will now no longer pass.

  • On Thursday 25 we have the release of UK Quarter on Quarter GDP with the market expecting no change on previous quarter remaining at 0.3%.
  • On Thursday 25 we will have the release of the latest US Initial Jobless claims with the market expecting 238,000.

A score of -1.0 indicates an extremely poor economic outlook, which is accompanied by a high probability of negative returns in risky asset classes like equities. The Risk Barometer tilts our portfolios away from equities during such periods.

A score of 0 indicates a neutral economic outlook with almost equal probability of positive and negative returns in risky asset classes like equities. The Risk Barometer maintains a balance between equities and other asset classes during such periods.

A score of +1.0 indicates an extremely positive economic outlook, which is accompanied by a high probability of positive returns in risky asset classes like equities. The Risk Barometer tilts our portfolios towards equities during such periods.

*as at latest realignment 24/04/17

Notice:

The performance of each asset class is represented by certain Exchange Traded Funds available to UK investors and expressed in GBP terms selected by Copia Capital Management to represent that asset class, as reported at previous Thursday 4:30pm UK close. Reference to a particular asset class does not represent a recommendation to seek exposure to that asset class. This information is included for comparison purposes for the period stated, but is not an indicator of potential maximum loss for other periods or in the future.

Risk Barometer

0

as at latest realignment

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    Copia Capital Management

    Fleet House, 8-12 New Bridge Street, EC4V 6AL

    Copia Capital Management is a trading name of Novia Financial Plc. Novia Financial Plc is a limited company registered in England & Wales. Register Number: 06467886. Registered office: Cambridge House, Henry St, Bath, Somerset BA1 1JS. Novia Financial Plc is authorised and regulated by the Financial Conduct Authority. Register Number: 481600.

    © 2021 Copia Capital

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