The year finished strong as investors look ahead to a 2021 recovery.
Previously lagging sectors, such as Energy and Financials, were the best performers, we believe, due to growing expectations for a full re-opening of the economy.
As the rotation towards recovery plays continues, we have increased our exposure to economically sensitive areas such as emerging markets.
The Road to Recovery is Paved with Government Spending and Vaccine Approvals
Finished the year strong:
At the beginning of the fourth quarter, uncertainties surrounding the US elections, timing of vaccine approval, and above-average valuation levels left many investors questioning whether the rally off the March lows could be sustained. News of additional stimulus, improving economic metrics, and multiple vaccine approvals overshadowed those uncertainties. As a result, investors chose to focus on the road ahead rather than the rear-view mirror. Ultimately headlines gave way to recovering fundamentals, leading globa
The most recent inflation data release and the U.S. consumer price index were on investors’ minds Wednesday, as the index climbed 0.4% in December, a value in line with a Dow Jones estimate.
Stocks and index ETFs rallied strongly in the first week of the new year, but have begun consolidating since then.
“The market rally has taken a break this week,” said Mark Hackett, chief of investment research at Nationwide. He noted, however, that “sentiment and risk indicators continue to reflect investor optimism, with credit spreads at their tightest level since before the pandemic, fear & greed indicators at elevated levels, and the put/call ratio near historic lows.”
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2020: NSE overcomes Covid-19 challenges with innovation, technology as listed securities hit N1.72trn
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By Peter Egwuatu
The Nigerian stock market in the year 2020 will certainly go down in the history books as one of the most challenging years of modern existence.
However, the Nigerian Stock Exchange, NSE during the year under review overwhelmed the storm through innovation and technology as value of listed securities hit N1.72 trillion.
Early in the year, a global pandemic took the world by storm necessitating a significant change in life and work as we know it.
On 23 and 24 March 2020, the Exchange took steps to preserve the health and safety of its stakeholders by activating its Business Continuity plan which saw the transition to working from home and remote trading in response to the spread of the Coronavirus, COVID-19. Since then, the Exchange has maintained seamless working and trading operations, experiencing zero down time.
Xtrackers MSCI Eurozone Hedged Equity ETF (DBEZ) are both up about 3% to start the new year. While both funds feature a euro hedging strategy, the currency could be gaining strength amidst a weaker dollar.
DBEU seeks investment results that correspond generally to the performance, before fees and expenses, of the MSCI Europe US Dollar Hedged Index. The fund, using a “passive” or indexing investment approach, seeks investment results that correspond generally to the performance, of the underlying index, which is designed to track the performance of the developed markets in Europe, while mitigating exposure to fluctuations between the value of the U.S. dollar and the currencies of the countries included in the underlying index.