Summer Outlook Special — Volatility likely to remain, signals to watch, and sleepless summertime nights

Genuine Impact
Aug 20 · 3 min read

Here are the top 3 insights for August 20th.

Today’s Brief

  • Ashmore: Volatility likely to remain high during the summer
  • Wells Fargo: The Cold Wind of August — Signals To Watch
  • Franklin Templeton: US Market Volatility and Sleepless Summertime Nights

Volatility likely to remain high during the summer

  • US naming China a currency manipulator doesn’t change anything, but is a symbol of the White House’s political interference in key institutions.
  • Venezuelan assets frozen while full-blown economic sanctions are announced.
  • President Macri suffers heavy defeat in Argentinian primaries ahead of 27 October general election.
  • Oil sell-off versus higher gold prices, point to further hedging against negative rates and recession.
  • Volatility is likely to increase further as tensions between asset pricing and economic and monetary policy divergences abound.

Genuine Scores for the top 3 Stocks:

  • Och-Ziff Capital Management Group, 84
  • Peugeot, 77
  • Qudian, 77

The Cold Wind of August — Signals To Watch

  • Even by August standards, when market liquidity declines and volatility often rises, this month is delivering a larger than normal amount of unusual events.
  • The escalation of the U.S.-China trade conflict on August 1 and subsequent delay of newly proposed tariffs on August 13; the U.S.
  • Treasury’s labeling of China as a currency manipulator, the first use of that designation in 25 years.
  • Unrest and protests in Hong Kong shutting down major transportation arteries — coupled with already slow global growth — all have markets concerned about the path forward.

Genuine Scores for the top 3 US focused Funds:

  • AAAMCO Ultrashort Financing Fund, 100
  • Goldman Sachs Access Treasury 0–1 Year ETF, 100
  • iShares Ultra Short-Term Bond ETF, 100

US Market Volatility and Sleepless Summertime Nights

  • The summer of 2019 has given equity investors a lot of things to worry about.
  • Yet, Franklin Equity Group’s Grant Bowers says the health of the US equity bull market shouldn’t be one of them — at least not now.
  • He discusses the biggest growth driver for both the US and global economy and explains why he likes the long-term prospects for select companies in the health care and technology sectors.

Genuine Scores for the top 3 UK listed Stocks:

  • Ferrexpo, 75
  • Etalon Group, 73
  • Liontrust Asset Management, 71

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All the best,
Genuine Impact Team

p.s. all Genuine Scores are accurate as of the 16th of August

Genuine Impact

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