In September, market indices in most developed countries, including the United States and Europe, declined. The reason for this was fears of rising inflation and expectations of rising interest rates by central banks. Other factors that contributed to the declines during the month were expectations of lower-than-expected economic growth. High costs of international trade and the global shortage of many goods continue to worry investors. Despite expectations of more moderate economic growth, the likelihood of a recession remains low for the time being.
In the United States, the Federal Reserve has announced that it will most likely start reducing its asset purchases in November, with plans to suspend them by mid-next year. These actions will be taken if the labor market data in November are better than expected. The Fed also presented a forecast for the next few years. The key interest rate is expected to reach 1.8% by the end of 2024, at current levels of 0%.
The European Central Bank (ECB) has also announced plans to cut purchases of assets from the emergency pandemic program. Unlike the Fed, the ECB does not intend to suspend them completely. Inflation rose to 3.4% in September, the highest level in thirteen years, reflecting rising gas and electricity prices.
Chinese markets recorded minimal growth in September, despite successive regulations imposed on local technology companies. Another significant event in China was the uncertainty surrounding the real estate market, which began after the financial difficulties of the largest company in the sector.
The reporting season for the third quarter of the year started in early October with optimistic expectations for corporate results and market performance, respectively. Together with the reports, the pace of economic recovery, the further actions of central banks and the risks of the spread of the Delta variant of COVID-19 create conditions for increased volatility by the end of the year. The management of Compass Invest continues to monitor the addition of companies with long-term growth potential, ahead of market averages, at attractive levels.
Performance of Mutual fund Compass Global Trends
Compass Global Trends ended the month with a share price of BGN 1.6291, which is -4.05% for the month and an increase of 10.37% compared to the beginning of the year.
Price for one unit of the fund for the period from April 1, 2014. until September 30, 2021
Performance of Mutual fund Compass Euroselect
Compass Euroselect ended the month with a share price of EUR 1.0597, which is -5.70% for the month and an increase of 5.91% compared to the beginning of the year.
Price for one unit of the fund for the period from July 16, 2018. until September 30, 2021
For more detailed information about the performance of Compass Global Trends and Compass Euroselect in September and about the development of global financial markets and management expectations click HERE.
In the United States, the Federal Reserve has announced that it will most likely start reducing its asset purchases in November, with plans to suspend them by mid-next year. These actions will be taken if the labor market data in November are better than expected. The Fed also presented a forecast for the next few years. The key interest rate is expected to reach 1.8% by the end of 2024, at current levels of 0%.
The European Central Bank (ECB) has also announced plans to cut purchases of assets from the emergency pandemic program. Unlike the Fed, the ECB does not intend to suspend them completely. Inflation rose to 3.4% in September, the highest level in thirteen years, reflecting rising gas and electricity prices.
Chinese markets recorded minimal growth in September, despite successive regulations imposed on local technology companies. Another significant event in China was the uncertainty surrounding the real estate market, which began after the financial difficulties of the largest company in the sector.
The reporting season for the third quarter of the year started in early October with optimistic expectations for corporate results and market performance, respectively. Together with the reports, the pace of economic recovery, the further actions of central banks and the risks of the spread of the Delta variant of COVID-19 create conditions for increased volatility by the end of the year. The management of Compass Invest continues to monitor the addition of companies with long-term growth potential, ahead of market averages, at attractive levels.
Performance of Mutual fund Compass Global Trends
Compass Global Trends ended the month with a share price of BGN 1.6291, which is -4.05% for the month and an increase of 10.37% compared to the beginning of the year.
Price for one unit of the fund for the period from April 1, 2014. until September 30, 2021
Performance of Mutual fund Compass Euroselect
Compass Euroselect ended the month with a share price of EUR 1.0597, which is -5.70% for the month and an increase of 5.91% compared to the beginning of the year.
Price for one unit of the fund for the period from July 16, 2018. until September 30, 2021
For more detailed information about the performance of Compass Global Trends and Compass Euroselect in September and about the development of global financial markets and management expectations click HERE.