This week was another of mixed market movements. The markets positively reacted to the investiture of Joe Biden as 47th president of the US. Indeed the investiture happened without major problems that were feared after the attacks on Capitol Hill. The hope is that Biden will manage to tackle social inequality and bring unity to a divided country. On an economic point of view, it is thought that the new president will issue an even more aggressive stimulus plan. This would most likely also benefit the stock markets. Besides that, investors are hoping for a loosening of the trade war policy of Donald Trump which would bring relief to the business environment of a lot of companies.
On the other hand, ever harshening lockdown measures are providing the markets with negative signals. Since December, the virus seems to have gained territory in most countries. As of this week the Dutch government also has tightened their measures announcing a curfew starting on saturday. Also, with the emergence of more virulent virus strains, governments around the world have been put with a dilemma: sacrificing their economy or part of their people. This is especially the case in developing countries. In the meantime, the vaccine is slowly being unrolled in the western world. Indeed, on Friday, new delays in the delivery of the Oxford/AstraZeneca vaccines were announced. In the long run this could undermine the EUs vaccination strategy. At the moment, though we might be seeing the end of the tunnel we are anything but close to it.
Overall, the stock markets increased this week. Indeed, the S&P 500, the Dow Jones and the NASDAQ all gained value this week. They closed at respectively 2%, 1% and 4%. In Europe, the AEX showed resilience closing at 1.35% while the CAC 40 fell slightly by -0.93%.
This week’s leaders of our investment competition are Fundamenta Fortis with an M2 of 11.95%. Their M2 is just under the AEXs one that is 12.05%. There has not been much change in the top tier of the ranking with the two runners up still being Metrics Fund and CFQ. The highest risers were Hera Moneta that overtook nine investment groups to end at the 25th place. The most unfortunate contenders were the Quants of Minerva dropping 12 spots and closing at 42.
The newcomer investment competition has also had a tumultuous week. Indeed all investment groups changed positions. For now, Das Kapital is leading the ranking with a solid 2.94% M2. At the bottom of the table we can now find the investment group iValue. They went one place down despite having increased their return by 0.51%.