COMMENT: Catch the funds years up and shake hands with a float

Shaken hands are investors who give up their strategy when the market fluctuates and return the pension back to the shoe box. Bohuel often at the cost of losing, which was confirmed at the end of last year, when stock prices fell by more than 10 percent. Today, the bag is floating and watching the stock conquer new highs and the recent decline is just a historical episode. Partners economist Martin Mat comments on the current market situation.

Not only savers in dynamic equity funds have their hands on me, but so conservative investors who are on the rise in the prices of their bond investments. In addition to regular years, they also attribute to investors the number of prices when their input falls. Do not be fooled by the monetary policy of the national bank, which raises rates. The bonds react to the development of the economy and to the conditions around us, where our central bank is sensitive only to the koruna’s exchange rate.

The correction worried the speculator

The fluctuation of the price of the action at the end of the year was not an exceptional event, but a correction that occurs on average once every five years. The bond was not a kind of stabbing crisis or paradigm shift, but suddenly there were several small factors that triggered the realization of profit. Unfortunately, the influence of the crisis, which we have had enough in the Czech Republic, had a long-term effect.

The decline in stock prices surprised many speculators and the days of dynamic investors, who suddenly found that their risk appetite was not prepared for such a decline and the shares began to sell en masse. The result was the loss and destruction of Vnoce.

… And gave long-term investors a cheap purchase

When sales calmed down, long-term investors drank and bought cheap ones. Gradually, too, Trump died with the turn of the election campaign, and his merchant wolf with her, Europe and the Maranas, became just a kind of kick-wolf with brightly colored variegated wolves. Brexit isn’t so hot either.

In the first half of the year, optimism also attracted optimism to central banks, which, according to the world economy, are slowly slowing down from the peak of the economic cycle and have pushed down rates to slow down to normal without any problems.

and now potat profits

Not surprisingly, the shares have risen upwards since January and the losses of last year quickly erased, now the prices of the stock are gaining new maximum values. Thus, any investor in equity mutual funds should now be above the value before the collapse.

This year alone, the profits of equity and pension funds are around 15%, and in some cases the fund will be around 20%. Only stocks in Central Europe and in underdeveloped countries are growing more slowly.

So conservative investments are

Due to the turnover in the breeding of central banks, and thus with regard to the arrest of lower rates in the USA and the shift of disputed rates to disputed disputes (sic!) In Europe, bond prices have shifted. In 9 European countries, even 10 years of bonds bear a call back and investors pay a debt of years for the purchase of the bond!

Conservative investors can also be satisfied, because bond yields have fallen and prices have risen for Czech bonds. Czech bond funds therefore have a performance in the first six months between 3 and 4%, which is more conservative for conservative investments, and even better than inflation, which is around 3%.

There really is no one who can rely on the performance of mutual funds this year, and on the shake of the hands and analysts who, from the sharp fall in the price of the event, concluded that the pension system is ineffective or will cause a crisis and collapse the world.

The exclusive first half of the year will not be repeated

What dl? The prices of the action for the first six months caught up with the loss, so it cannot be expected that a similar upward rate will be expected. However, they will continue to benefit from the moderate rhetoric of President Trump, who has launched his presidential campaign and now needs to keep the economy growing. American local companies are making the most of his steps. For example, European carmakers and German companies, which are subject to customs duties or even sanctions, are inappropriate (see Huawei).

Bonds are very likely not to end with their growth, as the decline in yields is likely to continue, due to lower rates in the US and EMU, which are likely to come in July. It is then up to the first conservative portfolios to be able to cope with the returns and spend on rising prices and falling risk premiums.

They are played by an unpredictable Czech national bank, which regularly has its approach to monetary policy. Actively, despite the general decline in rates and the easing of monetary policies, the Czech economy is being tightened by tighter monetary conditions. Bonds with the central bank do not play this game, but your basic rate is suitable for ultra-conservative funds, which can charge 2% of the year for the benefit of the client. When we add diversification, better tax regime and daily liquidity, retail clients will find it better for their investments.