Market Monitor 03/2018

The rhetoric in the US trade dispute against the world is aggressive. The ongoing negotiations in the background, are generally described as constructive and attune all sides optimistic. However, the Chinese do not want to let Trump walk over them easily. They have the possibility and the will to stand up to the US economically and politically. With the meeting between China and North Korea, the US was obviously outsmarted. The uncertainty in the markets is obvious. Trump also argues internally with his advisers and ministers. Who doesn’t back him, should go. The newcomers are less moderate Republicans who are worrisome regarding the upcoming geopolitical and trade challenges. Almost at the same time, the US Senate passes a USD 1.3 Trn increase in spending.

With geopolitical uncertainties, central banks will normalize the monetary policy more cautiously and will likely risk a higher inflation than become too restrictive too early. Nevertheless, faster inflation due to a trade war carries considerable risk in the face of very high levels of money and heavy indebtedness. For bonds, stocks, precious metals and the USD, prices are at or near the pivot point.

The fluctuations were considerable this month. Therefore, the hedges in our strategy MinMax Global Equity were increased and the net risk position was reduced.

Performance March                         -1.69%
Performance YTD                             -3.84%

Performance 3 months                   -3.84%
Performance 6 monts                      -0.16%
Performance 1 year                          +2.35%

Annualised Volatility                         7.50 %
Sharpe Ratio                                      -0.14

Investment Rates:
Equities   Liquidity    Futures          Net Investment Rate
92%          8%               -42%               50%