‘Only a deep recession can seriously threaten high yield’
According to experts, it takes a lot to bring down the global high-yield market. The high effective yields help absorb rising credit losses in a recession.
‘US trade deficit is a mathematical problem, not a political one’
High US import tariffs are meant to help reduce the budget deficits of the United States. “Whoever the next two or three presidents may be, they will face exactly the same problem: the country must find a way to reduce its deficits. Because they are unsustainable.”
Global trade after Trump
Following Donald Trump’s “Liberation Day,” investors are grappling with a fundamental question: Is a trading order possible that is less dependent on the United States? Or are we on the brink of a new Great Depression, as some doomsayers suggest?
Transfers: Nagelmackers, HF Quarters, Edmond de Rothschild, Allianz GI
This week’s overview of transfers and appointments in and around Luxembourg includes updates from Edmond de Rothschild, Bank Nagelmackers, HF Quarters, and Allianz Global Investors.
Wealth managers revisit small crypto allocations in portfolios
Bitcoin’s persistent popularity is reigniting portfolio debates among European wealth managers.
Oil stocks are a very cheap hedge against inflation
The energy sector serves as a safe haven during periods of geopolitical turmoil and is showing greater investment discipline. However, an increasing oil supply is dampening short-term expectations.
CSSF flags persistent AML gaps at investment firms
Anti-money laundering compliance has become a defining test for Luxembourg’s investment sector. At a closed-door AML/CFT conference on 28 March, the CSSF warned of persistent governance gaps, just as EU reforms raise the bar for compliance.
“Tear down this wall”
In the 1980s, Ronald Reagan became known for his hardline stance against the Soviet Union—a strategy that ultimately contributed to the end of the Cold War. Today, we see Donald Trump adopting a similarly confrontational approach, but this time on the economic battlefield.
When gold runs out
At the current rate of production, known gold reserves will be exhausted in roughly twenty years. Finding new sources will only become more expensive, but in the meantime, mining company stocks are performing exceptionally well. The gold miners index on Wall Street gained more than 40 percent over the past twelve months.
Chart of the week: generation gap
This week marked the 22nd edition of the Mining Forum Europe in Zurich. For a long time, it was an insider-only event mainly attended by mining companies, but with the recent surge in the gold price, there was much more room this time for a broader, macro-driven perspective.