Every Publication in this section is highly connected with our investment decisions, investment management and investment counselling. We provide a weekly publication where we analyse all the macroeconomic and monetary developments and we attempt to link those developments with our expectations explained in our quarterly bulletin. In essence our weekly publications are updates to our quarterly bulletins, and they are to be use combined.

The time has come! We finally face a correction of 9.2% (highs of 7th June to today’s lows) for the S&P500 which triggers our reaction. We came to this point invested by 87.5% of our portfolio on our stock exchanges positions and now we must deal with the biggest drawdown since the coronavirus lows in March.


On 23rd March 2020, we witnessed the bottom of the coronavirus sell-off for the S&P500. Since then, one of the most impressive bull markets of the stock exchange history took place. Within just 11 weeks, the S&P500 gained 48% up to yesterday’s highs. Only 5% away from its all-time highs. Many investors anticipate an upcoming fall in the prices, something that is questionable.


After the coronavirus breakout, we witnessed a sharp fall in stock prices which bottomed on 22nd March. Since then, the stock markets soared with the S&P500 index gaining roughly 40% up to yesterday’s highs.


What we witnessed last week was a rise in the S&P500 index of 3.69% coupled with a drop in volatility where the volatility index decreased from 41.15% to 34.97%. At the same time, no further stimulus announced. All those developments are positive signs for the immediate future.


Portfolio diversification is a strategic allocation of our invested funds to different income sources and risk factors in an attempt to reduce our portfolio’s total risk. We tend to buy different asset classes like stocks from different countries, bonds, sector ETFs and alternative investments to achieve a well-diversified portfolio.


After Federal Reserve and European Central Bank have announced their monetary policy for the next month, stocks have dropped leaving their high on 29th April behind. Market participants had probably been expecting more stimulus, so we are now facing some disappointment in the stock markets since then.