Kategorie: In the Press

Launch neuer Crypto Research Report

Posted on by Mark J. Valek

Der vierteljährliche Crypto Research Report ist die führende Autorität zum Thema Kryptowährungen und Blockchain-Investments für Finanzmarktteilnehmer und Institutionen. Jede Ausgabe umfasst exklusive Interviews, statistische Analysen verschiedener Kryptowährungen und hilfreiche Einsichten in die interessantesten und am häufigsten gestellten Fragen der Zeit.
Inhalt:
1:10 Marktübersicht
2:40 Interview mit Mark Valek
24:33 Flashnews
27:46 Link des Tages News

Launch neuer Crypto Research Report – Interview Mark J. Valek https://cryptoresearch.report/?lang=de


Inhalt:
1:10 Marktübersicht
2:40 Interview mit Mark Valek
24:33 Flashnews
27:46 Link des Tages News

Launch neuer Crypto Research Report – Interview Mark J. Valek https://cryptoresearch.report/?lang=de

 

 

Yield or how to receive cashflows in a negative yield environment

Posted on by Dr. Stefan M. Kremeth
Dear Ladies and Gentlemen I received a few mails on my very provocative statement that house pets, farming and children produce an enormous amount of greenhouse gases. I was provocative on purpose. It was my intention to trigger some reactions. I received two mails on the indirect financing of (nuclear) weapons via government bonds. It seemed most of my readers were never really looking at it that way. Fact is that you will never know what a government is doing with the money you pass on to them when subscribing to one of their bonds. They may buy weapons or build a children’s hospital with it – it is entirely up to them. I generally receive several mails per month from readers asking me how they should invest their money to achieve the best possible results. As always, I can’t tell you and I am not allowed to give any advice to you just like that, but I am happy to elaborate quickly on what I think seems a decent strategy to still get some yield in a negative yield environment. You know, Ladies and Gentlemen, my goal always is to receive cashflow with limited volatility. Some of my readers already know about my investment style. My investment style is real asset based and enjoys a rather large equity portion. However, the equity portion is limited to equities of companies producing positive net free cashflows and I like rebalancing the position in my clients’ portfolios from time to time. This means I define a “normal” weighting, i.e. around 5% for any equity position in a portfolio and harvest the dividends or capital reductions the underlying company shares with its investors. If the price of an equities-position appreciates over time and thus the weighting within the client’s portfolio goes up, I will start cutting back the position down to its initial 5% weighting. If, however, the price of an investment goes down and I can’t find any dramatic change in the strategic and/or earnings perspective and the company still produces positive net free cashflows, I harvest the cashflows and increase the position until it reaches its intended weighting of 5%. The result of this strategy is astonishing. Volatility decreases massively and performance increases. When markets are moving up, we only capture a part of the positive performance, because we like to keep a large cash position at hand. But when markets are going down, we usually only lose a fraction of what the market loses. It is during the down moves that we generate alpha. You can have a look at the monthly development of one of our portfolios on our website. https://www.incrementum.li/en/wealth-management/ It still needs the “right” equities and this is probably the most difficult part. Please let me know about your investment style and please share your investment experiences with me and my readers, but please don’t forget (instead of hitting the reply button) to send your messages to: smk@incrementum.li Many thanks, indeed! And now, Ladies and Gentlemen I wish you a great day and weekend.
 Kind regards,Stefan M. Kremeth
Wealth Management
Incrementum AG

Ronald Stöferle: Inflation und Rezession als Gamechanger für die Edelmetalle

Posted on by Ronald-Peter Stoeferle

Ronald Peter Stöferle spricht über:

1) Das Vertrauen bröckelt…
2) Das Vertrauen in die Notenbanken beginnt zu bröckeln…
3) Status Quo Gold und Commodities
4) De-Dollarization: Bröckelndes Vertrauen in die Dollar-Hegemonie
5) Quo Vadis, Aurum?

Active Rebalancing of Bitcoin Improves Portfolio Performance

Posted on by Mark J. Valek

Similar to the gold standard, cryptocurrencies are competing to become the dominant digital store of value protocol. A mixed gold and bitcoin portfolio has had a higher risk-return performance than single asset portfolios because of the low correlation between gold and bitcoin. Combining the gold and bitcoin portfolio with rebalancing bands, allows investors to manage Bitcoin’s volatility and transaction fees on turnover. 

Speakers: 
Demelza Hays is a research analyst for Incrementum AG and is responsible for the Crypto Research Report published by Incrementum. Moreover, she is developing innovative investment solutions in the field of cryptocurrencies.

Mark Justin Valek is a partner of Incrementum AG and responsible for Portfolio Management and Research.

Environmental, Social and Governance (ESG) friendly (Part one)

Posted on by Dr. Stefan M. Kremeth

Dear Ladies and Gentlemen
 
In last week’s part one on ESG investing, I shared some very basic information on ESG investments. Today I would like to point out some of the difficulties one faces when investing in ESG-friendly products. However, the short format of my weekly mail will not allow me to go into the topic very deep, but I am convinced I will make you reflect.
 
Let me start with an interesting and somewhat extreme example. Just imagine you were running a portfolio with an ESG-friendly touch and now just imagine for risk (volatility) reasons you were holding government bonds. No problem you may think, and most investors wouldn’t even think a second about that part of the portfolio. But it strikes me that even though most investment managers who offer ESG-friendly strategies would never invest in a weapons producing company, they are happy to give loans to countries spending enormous amounts of money on weapons of all sorts and sometimes even nuclear devices.
 
Ladies and Gentlemen, by buying government bonds and/or treasuries of the United States of America, Israel, the U.K., China, India, Pakistan, etc. investors are supporting the financing of weapons of mass destruction. The average investor does not think badly about it, I even think the average investor would not think about this at all and yet by buying government bonds and/or treasuries, investors are providing loans to governments, which the respective governments may use to buy and/or build weapons of mass destruction.
 
This is why I am of the opinion that if so called ESG-friendly products contain government bonds and/or treasuries and/or gilts or whatever one wants to call such papers, no truly ESG-friendly investor should touch such products.
 
You see my point, right? When investing in ESG-friendly products you have to be careful because sometimes you do not get what you expect. On the other hand the run on ESG-friendly products is important these days, especially as regulation forces investment managers in that direction. Trouble is, realistically there are simply not enough truly ESG-friendly investments available and therefore investment banks and financial product designers must become “creative”.
 
Anyhow, there is one more thing I want to add. Today everyone is fixed on CO2 emissions even if “greenhouse gases” in general are a much more important factor than CO2 emissions only. By now just about everyone should appreciate the fact that it is greenhouse gases we have to look at because greenhouse gases (GHGs) are absorbing infrared radiation and cause the so-called greenhouse effect. As you may know GHGs are both natural gases, such as carbon dioxide, water vapor, methane, and nitrous oxide, as well as human-made gases, including chloro- and hydro-fluorocarbons. Yet, it is very easy to blame a diesel car taxi driver for polluting our cities but let’s face it keeping for example a house pet for the sheer pleasure of keeping a house pet is probably even worse. According to the Humane Society of the United States, there are 86.4 million cats and 78.2 million dogs in homes around the U.S.. Just imagine, the enormous amount of greenhouse gases the global population of house pets is producing directly and indirectly.
 
Now tell me, why is the media not tackling this issue, why are they so concerned about fossil carburates but do not seem to be considering house pets, or children, farming, etc? I would almost assume, because you cannot win elections by telling the electorate to put to sleep their house pets and to stop reproducing, i.e. stop having children. It is much easier finding one weak opponent – today it’s the diesel car producers and drivers – and bang on their heads until everyone believes that producing diesel cars is the worst thing that ever happened to humanity.
 
What drives me crazy is that large masses of people can be irritated and thus manipulated so easily.
 
Ladies and Gentlemen, I urge you to ask questions, always. Do not just believe what the media and politicians want you to believe. The first ones have only one interest, to catch your attention for as long as possible, like this they can charge higher rates for adds and thus earn more money, the later ones only interest is either to be elected or to be re-elected. This is it! They don’t care about you, they either want your attention to make money or your vote to get power and make money.
 
As always, I encourage you to send me your feedback and/or questions but please don’t forget (instead of hitting the reply button) to send your messages to:
 
smk@incrementum.li
 
Many thanks, indeed!
 
And now, Ladies and Gentlemen I wish you a great day and weekend.
Kind regards,
 
Yours truly,
 

Stefan M. Kremeth
Wealth Management
Incrementum AG

Environmental, Social and Governance friendly (Part one)

Posted on by Dr. Stefan M. Kremeth

Dear Ladies and Gentlemen

Once every few weeks I receive messages by readers that ask me about Environmental, Social and Governance (ESG) friendly investments. I think it is about time to take up this topic.
 
This week, in part one, I would like to share some basic information and explain some of the terminology used in connection with ESG friendly investments. Next week I would like to offer my point of view on the difficulties arising when trying to choose ESG friendly investments.
 
Let’s start with ESG. ESG stands for Environmental, Social and Governance and defines certain standards used to screen investments.  You may have read or heard of the following terms, like SRI and/or CSR. SRI (Socially Responsible Investments). SRI basically covers as the name would suggest the field of socially responsible investing and looks for investments that are considered socially conscious because of the nature of the business the company conducts, while CSR (Corporate Social Responsibility) is a business model that may help companies be socially somewhat accountable to it its stakeholders and the general public.
 
When looking for an investment, one my come across the terms of “Impact Investing” and/or “Green Fund”. Impact investing aims to generate specific beneficial social or environmental effects in addition to financial gains and green funds should invest only in sustainable or socially conscious companies, avoiding the rest of the investment universe.
 
When looking at ESG investments, statistics on CO2 (carbon dioxide) emission are probably one of the most common denominators used to explain negative environmental effects. However, I prefer statistical data on so called “greenhouse gases” as such statistics offer a wider, more complete picture. The most commonly known greenhouse gases are water vapor, carbon dioxide, methane, nitrous oxide and ozone.
 
Ladies and Gentlemen the above basics are needed for my next weekly, which I promise will be somewhat more spicy.

As always, I encourage you to send me your feedback and/or questions but please don’t forget (instead of hitting the reply button) to send your messages to:

smk@incrementum.li

Many thanks, indeed!

And now, Ladies and Gentlemen I wish you a great day and weekend.

Kind regards,

Yours truly,

Stefan M. Kremeth
Wealth Management
Incrementum AG

Low inflation is going to stay for some time! Readers feedback

Posted on by Dr. Stefan M. Kremeth

Dear Ladies and Gentlemen

My last weekly mail on Japanese conditions in global government bond markets triggered a few messages by readers. Unfortunately the format of my weekly mail doesn’t allow me to publish all of the answers in full length but as usual I am very happy to include some of the ideas and comments I have received. In general everyone seemed to agree that there were no signs of higher bond yields, nor any sharp inflation increases on the horizon, at least not in advanced economies. My old friend Mark could even imagine negative inflation especially since he strongly believes that borrowing reduces future growth and I wouldn’t argue against that.

Anton added his believes of interest rates remaining under the manipulation of central banks for some time in the future, as to allow continuous debt servicing going forward. However, he sees at least two major issues with this. First artificially low interest rates are bad for efficient capital allocation (i.e. low interest rates in the US have incentivised corporates to lever up, do M&A and share buybacks at the expense of investment spending, including higher wages. Second artificially low interest rates benefit owners of financial assets at the expense of savers. Again, I wouldn’t argue against that.

You know, Ladies and Gentlemen, I am seriously troubled when other people’s ideas become “religion” and whenever this is the case, I think we need to be careful. Anton made an interesting statement in this respect. He mentioned that this is why he valued “so dearly the Enlightenment as a philosophical, theological and scientific movement because it liberated our civilisation from dogmatic thinking…now and again our society falls back into that rigid form of looking at things, but that’s the echo of the cyclical nature of human history…perhaps the future is brighter.” What a statement, I sure like that one and hope for my remaining life span to be long enough to live that bright future!

Last but not least I wanted to share a short statement by Robert, who pointed out to me an important fact in respect to the cash-flow strategies I am so fond of. Fact is that depending on where you are domiciled, cash-flows stemming from investments in financial assets are taxed in different ways and sometimes even in a „prohibitive manner“ and thus taxes most probably will have a more or less negative impact on the strategy as such. This is certainly true. However, as I cannot possibly know all the different tax laws, I hope for your understanding.

As always, I encourage you to send me your feedback and/or questions but please don’t forget (instead of hitting the reply button) to send your messages to: smk@incrementum.li

Many thanks, indeed!

And now, Ladies and Gentlemen I wish you a great day and weekend.

Kind regards,

Yours truly,
Stefan M. Kremeth
Wealth Management
Incrementum AG