The Mosaic Global Fund had a 2.47% return for the month of Jan.
January was a month full of dramatic events. The Swiss Central Bank informed the market that it would remove its cap of the Franc against the Euro. This resulted in the Eur loosing slightly less than 20% of its value against the Franc in one day – a dramatic move to say the least. The Eur weakening against the Franc has been an ongoing problem in Eastern Europe due to the fact that many property owners have borrowed money in Franc due to lower interest rate levels; this problem has now been accelerated.
During the month the European Central Bank (ECB) continued to reaffirm markets about their intention and commitment to Quantitative Easing (QE). The message from the ECB came around the same time as the Greeks elected a new government with a very anti-austerity agenda. Germany’s Angela Merkel had already prior to this warned Greece that they have to take responsibility for their own debt. There are clear risks that the new Greece government could create more turbulence in the coming months.
US equity markets had a negative start to the year and lost around 3% while European stock markets, following the ECB statement on increased spending, had a strong month. Interesting to note following the strong January for European stock markets is that the ECB QE programs could be what’s needed to trigger a revaluation of European stocks against US stocks which have strongly outperformed over the last couple of years. We are already seeing signs of this in our Momentum indicators. If this trend continues the Mosaic Global Fund will increase its holdings in non-US equity markets over the coming months.
The Mosaic Global Fund followed up the last few months’ streak of positive performance with a strong January. The majority of returns were generated in the bond markets with a tilt towards longer term bonds and with losses in primarily US stocks.
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