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  • Francois Abley

Summary of annual performance by sectorial average asset class (2017-2019)

#GSTA #GlobalStreeTraderAcademie #MacroTrader #MacroInvestor

You have in front of you all the average sectorial performance of the different asset classes over the last 2 years (2017-2019). The obvious observation is that the American market over performs all these asset classes with a partial balance of about 30% on maturity 2017-2019; It should also be noted that 2019 is in progress and just barely started. So this is only a partial review. In spite of everything, the American markets are making rain and good weather at the level of investor preference. The European and American bond market is practically similar at a glance in terms of performance even if, on an accounting point of view, these two markets do not have the same Bond mass fund. Looking at them, we can, therefore, infer that a lambda investor will not have a real opportunity cost to invest either in Europe or in America between the US bond market and the European equity market. The big surprise comes from the European action market which is always struggling to follow his American cousin. It shows a poor performance of 4% in this study from 2017 to 2019; Thus even losing all the accumulated gains during the period of May 2018 where it was at its highest in terms of performance around 30% while at the same period its American counterpart had a score of approximately 40% in terms of performance.


In view of this observation, it can therefore be said that a brilliant portfolio manager, would have done well to invest at least 50% of his portfolio on the American and European bond markets, thus giving priority to the safety and the reduced risk see low, and Going for aggressiveness by allocating between 20% to 30% of its overall portfolio in U.S. equities markets and then distribute the remainder to other markets. As you could see, the Forex market was to be avoided during the period 2017-2018. Monthly or quarterly earnings certainly, but definitely not annual. We have also omitted the impact of real inflation on the portfolio in terms of cost. This data is therefore crude. Forex still remains an extremely difficult market to tame especially in periods of expansion or growth. That is why it is inferred that it is a cover instrument. It would be more detrimental to compromise on Forex in periods of uncertainty or financial meltdown. 2019 or 2020 could, therefore, offer superb medium-term momentum on the currency market which is closely related to the bond market. Diversification is not a choice of fashion, but rather a Primordiality!

#GSTA #GlobalStreeTraderAcademie #MacroTrader #MacroInvestor

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