MF Compass Global Trends ended January with a price of 1.1206 BGN per share, which is an increase of 5.00% compared to the previous month. For the same period, the leading stock indexes also reported a partial recovery after the significant decline in the last quarter of 2018. Investor optimism resumed in January, given the change in the expectations, on two key issues. The US Federal Reserve meeting in early January reassured investors about its intention to continue raising the US interest rates. At the same time, the eloquence surrounding the US-China trade relations has improved, although no deal has been reached yet.
At the height of the reporting season, among the published companies, the largest increase in the share price in January was reported by: the well-known social platform Facebook (+ 26.74% in BGN), the company offering streaming services Netflix (+ 26.42% in BGN) and the Chinese platform for Alibaba online trading (+ 22.52% in BGN).
The reporting season continues in February with a focus on the companies’ forecasts for their future results. However, the development of negotiations between the United States and China will be the highest priority during the month, as higher tariffs on Chinese imports will take effect as of March 1st, unless a new agreement is reached. The outcome of the negotiations will be key to the forecasts for the development of the global trade relations. Many global geopolitical issues inevitably affect business activity, but given the fundamental characteristics and competitive advantages of the companies selected in the portfolio of MF Compass Global Trends, the funds’ management expects them to continue their growth in the long run.
If you would like to learn more about the presentation of MF Compass Global Trends in January, as well as get more information about the development of the global financial markets and management expectations, please click HERE to view the full newsletter in a PDF format.
With respect,
The Compass Invest JSC team