11 Jul 2017

The Strength of the Euro and the Pound

The stock market is lively in Latin America.

In the first week of July, the Robot has baptized two currencies as the favorites in the short term: the Euro and the pound. In a moment where the financial markets are not shining particularly brightly in terms of growths, in fact, the SelfieWealth Global Index decreases by 0,23%, the volatility anyhow remains within the average, with the SelfieWealth Volatility index at 8,48%, and thus in a climate of tranquil operations and substantial serenity amongst operators. As already cited, the strength of the Euro (EUR) continues to be noteworthy, against all other global currencies, with an average prediction of growth made by the RoboAdvisor that stops at 53,25% of probability of growth, a value that results elevated for a cross; following is the British pound (GBP) with an average probability estimated at 53,00% against all other currencies.

The portfolios of the Robot are concentrating on a specific geographical area, in particular Latin America, with an average profit that jumps, for the 10 TOP PERFORMERS, to a weekly +2,5%, also because of the exposure in foreign assets and the opening of the relative risk exchange. The top three portfolios are Argentine, followed by the Brazilian and an Israeli one. All the portfolios on the podium have allocated bonds assets over 26%; in numbers, the ideal Asset Allocation, as identified by the RoboAdvisor for the current week, sees the pure stock at 23%, the ETFs at 18%, the Mutual Funds at 10%, the Futures on Indexes and Commodities at 16%, and the Bonds that grow to 30%. The component in liquidity of own currency is null, while foreign currencies occupy 3%. The observation of medium term is that the share of assets allocated in mutual funds of investment, and thus related to managed savings, has slowly decreased, going from very elevated values at the start of the year to only 10% today; this is a sign that the Robot prefers aiming on single securities, choosing single bonds and relegating the values that can bring third party items to a minority share of its own portfolio.

Among the equities of interest, allocated in the best robo-portfolios, the Robot aims very much on Brazil, signaling various interesting stocks: we report some, with an interesting upside and a probability of growth that is appreciably above 52%: Wetzel S A PN (MWET4.SA), Emae PN (EMAE4.SA), Metalfrio NM (FRIO3.SA); it is also important to signal Dolby Laboratories Inc (FUO.F) and the Taiwanese JIIN MING INDUSTRY TWD10 (3230.TWO).

On the front of currencies, various ones have been hit hard and are weak, such as the South African rand (ZAR), the Russian ruble (RUB), and the Argentine peso (ARS).

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