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.

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.


In a complete macroeconomic cycle, investors come across with several challenges, most of them are emotional challenges and not rational or objective. In this article we are going to clarify some of the basic rational and emotional difficulties which investors must deal with in different phases of an economic cycle.


What we have observed this week is a slow and gradual deceleration of the virus in the western world and some countries are already preparing the first containment measures abolition. Basically, this would be a positive development for the risk assets and the stock exchanges would have moved higher. But they didn’t. There are two main causes for that.