The Mosaic Global Fund had a -5.05% return for the month of August.
August proved to be a very volatile month for stocks globally. China was in focus and concerns over growth in the Chinese Economy dominated headlines. A devaluation of its renminbi against the USD to help stimulate the Chinese economy took place. While this is certainly helping Chinese exporters it did not help stop the outflow of capital from its stock markets. The Shanghai market ended down 12.5% for the month. The European and US stock markets was also under pressure loosing 6.3% and 8.5% respectively. The fall in stocks slowed towards the end of the month with Chinese authorities stimulating the economy with lowering of interest rates and a cut in the RRR – reserve rate requirement. Some members of the Federal Reserve in the US noted that increasing rates in September was becoming “less compelling” due to the ongoing uncertainty in global markets. This helped to strengthen markets further.
The Mosaic Global Fund showed losses in our stock market positions which were mainly in the United States, and in commodities. Our bond positions showed profits, but with the strong sell off in stocks, were not able to offset the losses in stocks and commodities.
As a result of the strong stock market sell off in August, taking most developed stock markets globally into negative trends, the Fund’s risk will be strongly reduced and bond market positions and cash initiated. Due to the strong recovery in commodities some of that position will remain but also here the Fund will reduce exposure due to continued weakness in the commodity space.
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