Despite the weak start, most stock markets ended October with growth, marking new highs. Concerns about the macroeconomic situation and changes in monetary and fiscal policies have been overshadowed by the strong start of the US reporting season. For the third quarter of the year 80% of the companies published results higher than expected. With the gradual takeover of COVID-19, the likelihood of economic closures is diminishing and the focus of investors is shifting to dealing with the effects of the pandemic. Supply and delivery problems, the energy crisis and rising inflation are key topics that will also affect government policies.
In the US for the third quarter, GDP grew by 2% on an annual basis, far from 6.5% in the first half. At the same time, inflation rose to 5.4% in October. The labor market showed a decline in unemployment to 4.8%, giving the US Federal Reserve reason to begin tightening of monetary policy. The Fed is expected to announce a target in November to halt asset purchases by mid-2022 and then begin raising interest rates.
The European Central Bank has said inflation is considered transitional and has postponed a decision to buy assets for December. GDP in the euro area grew by 2.2% in the third quarter, with consumption making the largest contribution. The problems of the automotive sector in Germany have the greatest negative impact.
Investors' concerns about the Chinese real estate market have eased slightly after China's largest housing construction company managed to make an interest payment on its debts, which it had missed in October. The focus is on the actions of the Chinese authorities against the growth of such a problem. As the risks of rising inflation increase, we also see an outflow from the bond market. This should support the stock market. Uncertainty about the duration of weakening economic growth and higher inflation creates conditions for increased volatility in financial markets. Based on clear criteria for selecting companies with long-term potential for growth, ahead of the average levels for the market, the management of Compass Invest continues to monitor the addition of companies at attractive levels.
Performance of Mutual fund Compass Global Trends
Compass Global Trends ended the month with a share price of BGN 1.6838, which is 3.36% for the month and an increase of 14.08% compared to the beginning of the year.
Price per unit of the fund for the period from April 1, 2014. until October 31, 2021
Performance of Mutual fund Compass Euroselect
Compass Euroselect ended the month with a share price of EUR 1,1039, which is 4.17% for the month and an increase of 10.32% compared to the beginning of the year.
Price per unit of the fund for the period from July 16, 2018. until October 31, 2021
For more detailed information about the performance of Compass Global Trends and Compass Euroselect in October and about the development of global financial markets and management expectations click HERE.
In the US for the third quarter, GDP grew by 2% on an annual basis, far from 6.5% in the first half. At the same time, inflation rose to 5.4% in October. The labor market showed a decline in unemployment to 4.8%, giving the US Federal Reserve reason to begin tightening of monetary policy. The Fed is expected to announce a target in November to halt asset purchases by mid-2022 and then begin raising interest rates.
The European Central Bank has said inflation is considered transitional and has postponed a decision to buy assets for December. GDP in the euro area grew by 2.2% in the third quarter, with consumption making the largest contribution. The problems of the automotive sector in Germany have the greatest negative impact.
Investors' concerns about the Chinese real estate market have eased slightly after China's largest housing construction company managed to make an interest payment on its debts, which it had missed in October. The focus is on the actions of the Chinese authorities against the growth of such a problem. As the risks of rising inflation increase, we also see an outflow from the bond market. This should support the stock market. Uncertainty about the duration of weakening economic growth and higher inflation creates conditions for increased volatility in financial markets. Based on clear criteria for selecting companies with long-term potential for growth, ahead of the average levels for the market, the management of Compass Invest continues to monitor the addition of companies at attractive levels.
Performance of Mutual fund Compass Global Trends
Compass Global Trends ended the month with a share price of BGN 1.6838, which is 3.36% for the month and an increase of 14.08% compared to the beginning of the year.
Price per unit of the fund for the period from April 1, 2014. until October 31, 2021
Performance of Mutual fund Compass Euroselect
Compass Euroselect ended the month with a share price of EUR 1,1039, which is 4.17% for the month and an increase of 10.32% compared to the beginning of the year.
Price per unit of the fund for the period from July 16, 2018. until October 31, 2021
For more detailed information about the performance of Compass Global Trends and Compass Euroselect in October and about the development of global financial markets and management expectations click HERE.