EAP_SS22_GRYumifolio

Our group is aiming to build up portfolio with moderate degree of risk. Our target is to overdo market performance (S&P500 and DAX). For doing so we plan to use a top-down approach for selecting and adding positions into our portfolio. This comes from the fact that we firstly want to take macroeconomic conditions, sectors` and lastly company`s conditions into account. We consider that upcoming days are important for further market direction. Due to higher-than-expected inflation, the Federal Reserve’s monetary policy decisions and Ukrainian conflict S&P500 suffered almost 2% loss on 11th of February, thus we consider next sectors for our portfolio first additions:
 - information technology sector (due to its potential in the future and reduced prices now;
 - energy: as it is important today`s sector for future global economy development and its high potential. Additionally, Europe heavy depends on Russian gas, for example Germany is currently particularly dependent on fossil fuels  energy price increases; - consumer discretionary (due to its upward trend for next few month); - precious metals (these purchases will be done via ETFs or responsible Funds): 1) gold (traditional hedge for inflation, thus could jump upwards; a sign of instability will see large amounts of money flowing into the relative safety of government bonds, lowering interest rates and thus the opportunity cost of owning gold); 2) industrial metals (due to positive expectations for). Knowing our target sectors, we also consider the growth strategy as a core one to select a stock after a top-down screening. This means that we will be selecting companies with highest upside (this will be estimated based on consolidated ranks). Since our investing horizon is just few month, we are not going to implement value strategy. And lastly, we will conduct a technical analysis to obtain solid reasons for buys and sells. Additionally, we are tempting to imply ESG integration and positive screening approach