The Mosaic Global Fund had a -0.69% return for the month of Oct.
During October we saw continued volatility in global markets with stock markets starting the month by rallying strongly. Emerging stock markets recovered some of their large losses incurred over the last 4-5 months. Gold again tried to turn its negative trend around starting the month off strongly only to give most of these gains back before the month was over. Also oil started the month off strongly but ended on a weak note. The feeling is that the longer oil is trading at these levels the higher the risk that we will see oil break below 40 and continue even lower to levels not seen since 2009 and in the early 2000s.
In Europe ECB’s Mario Draghi communicated what was perceived by the market as a continued accommodating policy from the central bank. In plain English this simply means more stimulus and more stimulus again printing and injecting capital into the Economy with the hope that it will help support and create growth in the European economy. The continued accommodating policy from the ECB caused the EUR to weaken against the USD and the yield of European interest rates to rise.
Due to previous weakness in stock markets globally the Mosaic Global Fund came into October with very conservative positioning in mostly cash and bonds which resulted in a negative return for the Fund. With the strong recovery for stocks during the month bringing stock markets into positive trends again the Fund will allocate back into the stock market. The primary focus will be on the US markets which showed relative strength and the most resilient during the last few months’ negative and volatile development.
Please reach out to us on this email firstname.lastname@example.org, or give us a call on +352 202 033 27, to find out more about the Mosaic Global Fund and how the Fund is managed with our Trend and Momentum Filters. We look forward to speaking with you soon.
To Your Investment Success!
Per-Olov Jansson & the Cardea Investment Team