In Europe and the United States stock markets rose for the sixth month in a row amid easing of anti-epidemic measures and strong economic data. Shares of companies in the growth phase recorded the largest growth in August, followed by those in emerging markets.
Recent economic data show that economic growth in developed countries is very close to or almost above its peak. In the United States, the focus is on inflation in the context of the monetary policy of the Federal Reserve (Fed). In July the consumer price index remained unchanged at 5.4% growth on an annual basis. However, core inflation (the Fed's preferred indicator) rose to 3.6% on an annual basis. A speech by the Fed chairman at the Jackson Hall Symposium showed that inflation is still perceived as transitional and the labor market has not yet reached its target levels. Investors' attention remains focused on the Fed's next statements in September and November.
n Europe, business survey data weakened slightly in August, driven by supply problems due to the COVID-19 Delta variant. Industrial production continues to weaken. Core inflation rose 1.6% year on year in July, to 3% overall. Discrepancies in the period of summer sales of consumer goods affect the latest data on inflation and are expected to remain around current levels until the end of the year. In China, the growing number of people infected with COVID-19 significantly reduced economic activity in July. Along with the weakening industrial production, there is a decline in lending. After the initial negative reaction of the announced regulations in China and the fears of the virus spreading at the end of August, the shares in the region recovered.
Positive data on the economic recovery from the last month confirmed expectations and strengthened the growth of stock markets. How the economic recovery will continue given the further actions of central banks and the risks of the Delta spread will be among the key topics until the end of the year. Growing uncertainty makes the right selection of companies increasingly important. Following its strategy of selecting companies with long-term growth potential, ahead of the average levels for the market, the management of Compass Invest expects the portfolios to be favorably positioned.
Performance of Mutual fund Compass Global Trends
Compass Global Trends ended the month with a share price of BGN 1.6978, which is an increase of 3.82% for the month and an increase of 15.03% compared to the beginning of the year.
Price per unit of the fund for the period from April 1, 2014. until August 31, 2021
Performance of Mutual fund Compass Euroselect
Compass Euroselect ended the month with a share price of EUR 1.1237, an increase of 2.18% for the month and 12.30% compared to the beginning of the year.
Price per unit of the fund for the period from July 16, 2018. until August 31, 2021
For more detailed information about the performance of Compass Global Trends and Compass Euroselect in August and about the development of global financial markets and management expectations click HERE.
Recent economic data show that economic growth in developed countries is very close to or almost above its peak. In the United States, the focus is on inflation in the context of the monetary policy of the Federal Reserve (Fed). In July the consumer price index remained unchanged at 5.4% growth on an annual basis. However, core inflation (the Fed's preferred indicator) rose to 3.6% on an annual basis. A speech by the Fed chairman at the Jackson Hall Symposium showed that inflation is still perceived as transitional and the labor market has not yet reached its target levels. Investors' attention remains focused on the Fed's next statements in September and November.
n Europe, business survey data weakened slightly in August, driven by supply problems due to the COVID-19 Delta variant. Industrial production continues to weaken. Core inflation rose 1.6% year on year in July, to 3% overall. Discrepancies in the period of summer sales of consumer goods affect the latest data on inflation and are expected to remain around current levels until the end of the year. In China, the growing number of people infected with COVID-19 significantly reduced economic activity in July. Along with the weakening industrial production, there is a decline in lending. After the initial negative reaction of the announced regulations in China and the fears of the virus spreading at the end of August, the shares in the region recovered.
Positive data on the economic recovery from the last month confirmed expectations and strengthened the growth of stock markets. How the economic recovery will continue given the further actions of central banks and the risks of the Delta spread will be among the key topics until the end of the year. Growing uncertainty makes the right selection of companies increasingly important. Following its strategy of selecting companies with long-term growth potential, ahead of the average levels for the market, the management of Compass Invest expects the portfolios to be favorably positioned.
Performance of Mutual fund Compass Global Trends
Compass Global Trends ended the month with a share price of BGN 1.6978, which is an increase of 3.82% for the month and an increase of 15.03% compared to the beginning of the year.
Price per unit of the fund for the period from April 1, 2014. until August 31, 2021
Performance of Mutual fund Compass Euroselect
Compass Euroselect ended the month with a share price of EUR 1.1237, an increase of 2.18% for the month and 12.30% compared to the beginning of the year.
Price per unit of the fund for the period from July 16, 2018. until August 31, 2021
For more detailed information about the performance of Compass Global Trends and Compass Euroselect in August and about the development of global financial markets and management expectations click HERE.