Rietumu group experts have prepared their regular monthly overview of Rietumu Asset Management (RAM) investment funds for June. The report contains an analysis of key economic data, monetary policy, and developments in stock, bonds, currency and commodity markets, as well as comprehensive expert’s comments.“In June the attention of investors was riveted to the British referendum (June 23 — Editor's note). The possible exit of Britain from the EU has raised doubts regarding the timeframe needed for interest rates to be normalized. Amid the unprecedented stimulating policy of Central Banks, the amount of negative yield bonds have reached a record USD 11.7 trillion level. Therefore, active and prudent asset selection becomes exceptionally important for investors,”say RAM portfolio managers. “It is worth noting that commodities performed well in June, a point to keep in mind is that low federal funds rate is favourable for the commodities sector. Iran has increased oil production to 3.8 million bbl/d up from 3.3 million bbl/d reached in March. At the same time, Saudi Arabia announced its plans to hold privatization of Saudi Aramco in 2018. In these circumstances, the US domestic oil production continued to decrease in June, whereas oil production in Canada started to pick up. In general, a hike in oil volatility is possible in the coming months,” state experts. The report draws attention to the fact that the precise consequences of Brexit are not predictable due to the political nature of the event. Undoubtedly, echo of Junes developments will return in the future. For the meantime, defensive assets like gold and high-grade bonds gain popularity among investors. The latest RAM report and expert commentaries can be found here.Rietumu Asset Management (RAM) is part of Rietumu Bank, the leading private bank in Latvia. The company provides professional asset management services. RAM’s products and services are intended for a wide range of investors and are designed to meet the specific demands and needs of each customer. In the current market conditions, RAM’s specialists offer their customers the ability to reach an effective yield to risk ratio.
Source: RIETUMU rietumu.ru