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Of these 5 Financial Assets, Only 2 made money this year. Here is how

May 2016

By Fareem Chagla

May 2, 2016 | 10:00 | Dubai

While trading cycles have reduced in duration and a heightened level of volatility is the order of the day, an asset class dominating headlines for a prolonged period is rare to come by. This has been evident during the course of the first 4 months of the current year – a period where almost all major asset classes donned the role of a leader at different points of time.

  • Equities began the year, recording possibly the worst start in years on fears of a global slowdown led by China.
  • Gold took charge in this period donning its tradition role as the Safe haven asset trending higher towards the USD 1280 an ounce level. It had since formed a trading range and after a hiatus within has in recent days moved higher breaking that channel
  • Crude oil weakened to sub-USD 30/bl level amidst the heightened fears of a global demand slowdown and subsequently rallied in possibly the most unexpected of moves returning over 50% since.
  • USD begins to weaken on the back of the dovish stance of the Federal Reserve and the trend has continued
  • Commodities as a whole pack, backed by this weakness in the dollar, trend upwards. Metals, base or precious, agri all participate in the rally.
  • Amidst the pack, Silver has taken the lead returning nearly 29% for the year to the current levels of USD 17.85 a troy ounce as against the USD 13.83 a troy ounce close for 2015.

Exhibit - Wealth Monitor Intelligence

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