WEALTH MANAGEMENT

On 2 January 2020, readers of the German “Handelsblatt Finance Briefing” could read the following statement:

“In 2020, the positive mood on the stock markets will continue, albeit somewhat dampened”. This was at least the opinion of the 30 analysts and economists from banks and securities firms whom the “Handelsblatt” had interviewed in their traditional capital market analysis. The experts expect the Dax to climb to 13,999 points by the end of next 2021 year. That would be another plus of around five percent – and a new all-time high. The domestic leading index would exceed the previous record closing price of 13,559 points from 2018.

On December 28, 2017, the headline of the traditional article read as follows:”The Handelsblatt interviewed 32 economists and analysts about their forecasts for next year. The result: The Dax will reach further peaks. The good economic situation remains the driver for higher profits.”

Most investors still remember what became of 2018. While it is true that 2018 reached peaks at the end of January. From there, the world’s stock markets went downhill.

At the end of 2017, the estimate for the Dax Index was 14,000 points for the end of 2018. This forecast was missed by 3,500 points or 25 percent. At the end of 2018, the 30 analysts’ forecast for the final level in 2019 was 12,053 points. This forecast was missed by 1,300 points or 10.6 percent.

These misleading forecasts can be found for all global stock markets.

We are of the opinion that an index level cannot be predicted. The most important driver for share prices is the expected profit developments or their revisions.

This is why we believe in the statement of the well-known investor Sir John Templeton “If you want to outperform the masses, you have to do something different than the masses”.

To do better than the masses, you have to find out where the masses are, because you only want to be there until the market situation changes.

For this reason, we have formed a close partnership with our partners www.openmetrics.ch for risk management and AlphaStream for the right stock selection, so that our clients become independent of predictions.

Contact us to learn more about our strategy and how we can help you realise your investment goals.

ASSET MANAGEMENT

ANALYSIS

The analysis phase is the foundation for long-term success. We find out about your personal investment goals, return expectations, risk tolerance and review your current portfolio. Together with you, we draw up your individual asset strategy, which will be the basis for our daily work.

PLANNING

In the planning phase, we put together your optimal portfolio and make recommendations on how to achieve your financial goals. Within the framework of a scenario analysis, we show you how the optimal portfolio for you would have worked in the past and will most likely develop in the future.

REALISATION

In the realisation phase, we implement the asset structure defined in the plan step by step. In doing so, we always keep the objectives set out in the asset strategy in mind. Our strategic partner AlphaStream supports us during this phase.

MONITORING AND ONGOING SUPPORT

We use modern portfolio management systems to measure performance and regularly analyse the risk/return ratio. The portfolio is continuously aligned with the defined asset strategy and adjusted if necessary. In this way, we ensure that the requirements of the asset strategy are always met.

Custom-tailored asset protection

Custom-tailored strategies

Measurement of market stability

When implemented in an investment strategy it is possible to reliably reduce stock market losses. A conservative approach is taken for implementation by not employing any illiquid instruments.

Most of the hedging strategies used to date are generally too slow, not precise enough, or have too much room for interpretation and therefore do not provide clear signals for precise control of the equity portfolio.

The market stability signals developed by OpenMetrics Solutions are calculated on a rolling basis for the last observation window (e.g. weekly, monthly) and used for the coming period.

The market stability signals range between 0 and 1, which usually means (0% and 100% exposure). In the presentation you will find information on our equity mandate.

PRESENTATION

REPORTING

Asset consolidation and reporting