Is the bull market still alive – Earnings Season’s Biggest Week

Is the bull market still alive – Earnings Season’s Biggest Week

  • Earnings Season’s Biggest Week
  • Structured Products deliver returns in uncertain times
  • FINOVA Investor Digest

 

Globally, investors will be eyeing second quarter (Q2) earnings releases this week from some of the world’s largest companies like Visa, Boeing, Facebook, AT&T, Alphabet, Amazon, Starbucks and 3M. This will provide insight into the health of the global economy and growth.

Looking at the S&P’s earnings expectations will provide guidance to where the market could go to next. Last week several USA indices made record highs. Analysts are expecting earnings to contract 3% for Q2. This isn’t good, but if companies surprise positively, investors will continue to have faith in the USA’s 10-year bull market. This is important for emerging markets who need international investors to remain optimistic.

If investors become increasingly worried about the health of the US and global economy, we could see a risk assets like shares being sold for safe havens like bonds, cash and guaranteed products.

Investors who want to maintain exposure to equity markets but don’t want to take risk of capital loss should look at structured products. There are many that guarantee 100% or more of the invested amount. Below are our preferred structured products available.

New Round of Structured Products Launched

We have just received the latest terms for a couple structured products launched last week and have compiled a summary. There will be more launching in the next two weeks but below are the top three currently available.

These products provide 100% capital guarantees with minimum returns up to 28.9% even if the market is negative over the investment period. Starting investment is R250,000.

Structured Product Summary 22 July 2019

For more information on how you can access the above structured products contact us.

The week ahead:

  • Local data: Manufacturing: Consumer Price Index (24/07); Producer Price index (25/07)
  • Local Results Due: AMS (22/07), KIO (23/07), AFE (24/07), ANH, ALP, CCO (25/07), AGL, BTI, L2D, OAO (26/07)
  • International Earnings Results: Facebook, Coca-Cola (23/07); Amazon, Louis Vuitton, Boeing, Tesla, Ford (24/07); Alphabet, Colgate, Unilever, Volkswagen (25/07); Nestle, McDonald’s (26/07)
  • LDT: APF, ASHINF, ASHMID, ASHT40, INL, INP, ISA, NEWFSA, GIVFIN, NFSH40, STP, VUN (23/07)
  • Special/Share Premium Dividend (23/07): DTC, ISA

 

Other Economic data releases of interest…

  • Monday: BOJ Gov Kuroda Speaks (JP); RBA Assist Gov Kent Speaks (AUS)
  • Tuesday: Trade Balance (NZL)
  • Wednesday: Flash Manufacturing PMI (USA); RBA Gov Lowe Speaks (AUS); French Flash Services PMI, German Flash Manufacturing PMI, German Flash Services PMI (EU)
  • Thursday: Spanish Unemployment Rate, Main Refinancing Rate, Monetary Policy Statement, ECB Press Conference (EU); Core Durable Goods (USA)
  • Friday: Advance GDP (USA)

 

 

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