Speculative advice
The buying frenzy of bonds by central banks is no longer justified now that the world economy has demonstrated its robustness. The normalization of interest rates will probably result in 4 rate increases in the United States in 2018, each 0.25% from this month.
By mimicry, rates in Europe have already started their rebound.
Which stocks will benefit most from a rate hike?
Bank stocks, at least those whose main activity is to lend money in the long term funded by short-term deposits, will be among the first beneficiaries. Our preference will be on retail banks in Europe and the United States.
Life insurers will also be favored, the increase in rates allowing a reinvestment of premiums on more advantageous terms, mechanically increasing the future value of capital.
We would be happy to share our thoughts with you and make you benefit from our recommendations. Do not hesitate to contact us!
This is not a recommendation but just our opinion. Please consult with your financial advisor before investing!
The aim of this Certificate is to offer an annualized return in CHF of 5 to 7%, without the investor having to bear all the risk of the equity market. On the contrary, the certificate uses periods of decline to earn income from the sale of options whose price is proportional to the volatility that increases in these circumstances. Companies with excellent fundamentals, for example, are unfairly dragged down by the fall of the financial markets.
Structured products like barrier reverse convertibles within the certificate create a shock-absorbing effect while generating attractive revenues. Purchasing structured products in the secondary market is also extremely attractive as traditional investors ignore this market. For example, we identify structured products that trade at a discount of 10% to 15% compared to their issue price even though the prices of the underlying securities are still far from their barrier level.
The certificate also benefits from the income of the high-dividend securities that make it up.
Transactions within the Certificate are made under substantially more favorable brokerage conditions than those to which private investors are subject to their bank.
The strict selection of the components of the Certificate is based on more than twenty years of experience in fundamental research and is validated by a quantitative analysis filter.
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Do not hesitate to contact us!
This is not a recommendation but just our opinion. Please consult with your financial advisor before investing!
