Articles EUR/USD Parity elevating pressures on US companies Considering the elevated levels of inflation in the Euro-Zone and other economic indicators, the Euro-Area is facing serious threats. Accordingly, the question “which market participants are the most vulnerable to the current market developments” rises. From the trading perspective, it was crucial to us having limited potential losses with regard to the current levels of volatility, but still being able to earn an adequate premia and in result setting up our trading thesis. European Quality as a Return Driver Defensive Equity Portfolio During times of uncertainty, investors seek market uncorrelated returns and resort to fundamental value and high-quality equities. We built a portfolio of European value stocks with strong brand reputation and economy-resilient business models from a selective but flexible framework to navigate current market conditions. Rising Risks with Soaring Mortgage Rates SHORT: Mortgage Lenders: Mr. Cooper ($COOP) and PennyMac ($PFSI) In the past months, we noticed an accelerating velocity in US-Mortgage Rates. The housing market experiences significant price appreciation, fuelled by uncertainty. The FED doubling down on a hawkish policy, elevated real estate prices and increasing mortgage costs result in headwinds for Mortgage Lenders. Will There Be Stagflation In 2022? Raising rates in a broken market? On March 16, the Fed will likely commit to their first rate hike after a swift response of unprecedented measures to the onset of a global crisis in 2020. With current developments, we see signs of stagflation emerging and have discussed its consequences for markets. Profiteers of a booming Energy Market LONG: iShares U.S. Oil Equipment & Services ETF ($IEZ) Our Team took a closer look into the recent turmoil of the energy market and the impact of the rising political tensions in Eastern Europe. Contrary to the ESG-trend, we expect investments in the Oil & Gas Industry to increase in 2022 as oil refinery producers and equipment manufacturers recovered the 2020 demand gap and the growth outlook remains positive for the coming months.
