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2021 – Taken by storm | Flow Traders Investment Competition | Week 10

11/01/2021

With the first full week of 2021 officially in the books, we can safely say that the lack of fireworks on New Year’s Eve was overcompensated by the events that transpired over these past seven days. It appears that the unpredictability of 2020 has effortlessly spilled over into this year, signaling that there is much more in store for us than we might have hoped for. However, if there is one place where volatility is appreciated, it is in financial markets, as worldwide indices again enjoyed significant upwards movement. European indices such as the AEX & DAX both rose 3,6% and 1,5% respectively, whilst across the Atlantic ocean, the NASDAQ and DJIA also improved by +/- 1.5%.

Although American equities performed exceptionally well, the same can not be said about its governmental functioning body. On Wednesday afternoon, die-hard supporters of soon to be ex-president Donald Trump stormed the United States Capitol building in hopes of hindering the transition of power to soon-to-be president Joe Biden. This act of transgression against democratic principles has not occurred in any western country for decades, and therefore current president Donald Trump has received a lot of flak, as he is seen as the sole instigator of this violent outburst due to his comments regarding electoral fraud and miscounting of votes. Even though the American people have a long road ahead to regain political stability, this seems to be barely noticeable when one looks at American financial markets. Although some outlier stocks responded to this political drama, such as Smith & Wesson stock rising by 18%, overall market performance was stable and remained positive. 

So positive even, that one particular man earned him the right to crown himself as the new world’s richest man. Elon Musk, after Tesla stock had surged by over 22% the past week, shot past Amazon CEO Jeff Bezos who was serving his tenure as the wealthiest individual on the planet. It seems that the ambitions of Musk’s SpaceX are not the only things going to Mars, as Tesla shares have now grown by over 750% in one year. This means that the South-African/Canadian EV mogul now is entitled to the full rights of his bonus package as agreed by Tesla’s shareholders, which amounts to a whopping $56 billion.

Coming back down to earth, more positive news appeared in the form of an early-start vaccination effort by the Dutch government. Whilst initially set to start on the 8’th of January, healthcare employees employed in Covid-struck hospitals were granted the opportunity to become the first vaccinated individuals on Dutch soil. Although the Dutch vaccination program was furiously critiqued for lagging behind other European nations, current estimates indicate that the entirety of the nation could be vaccinated after near the end of 2021, which is a very welcome piece of information amongst the happenings of last week.

More positive news had certainly arrived for Fundamenta Fortis, who still remains in the lead of the Flow Traders investment competition with a M2 of 8,41%. Despite these positive numbers, both the MSCI world Eur Hedged UCITS ETF & AEX benchmark still outperform any group within the competition, so glory is sure to be found for the first following investment group which can rise above these figures. Metrics fund & CFQ are still highly contesting for the top position, so anything and everything is still possible. Although currently far from the top 10, Ares investment group still managed to pull in an additional 15,55% of returns, by far the biggest gainer this week.

Our second B&R beurs investment competition is also up and running, where Das Kapital takes the lead with their M2 of 3,29%. Although the majority of the group are still close in terms of return, Aethelstan investment was the only player posting negative numbers, by having a -0,52% M2 and -0,13% return delta. However, this competition has just started, so everything is still up for grabs.

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