Top wikifolio MSFJ International Commodity LehmanBrothers +43.6 % since Beginning +39.9 % 1 Year TOP WIKIFOLIO TRADE Buy 2022-05-27 at 02:26 pm L+G-L+G ALL COMMODITIES IE00BF0BCP69 Price (CHF) 15.885 5.2% Last Activity MSFJ International Commodity (Week Summary) We decided to sell all our share of Exxon Mobil. Since the start of our fund, this was among the most profitable trades we operated (+26%) in the equity part of our portfolio. Based on a chosen strategy of profit taking, we decided to take profit and reallocate the proceedings to ETFs. This will rebalance the split between equity and ETFs to 50:50. This was the same split we had at the beginning of the launch of this fund. We decided to bring the split of our portfolio back to 50:50 between ETF and shares as highlighted in our investment strategy. With the proceeds gained by the sale of Exxon Mobile we will buy 5.2% of L+G-L+G ALL COMMODITIES. This choice is backed by the insight that inflation rate have constantly increased in the last months: from 7.5% in February to 8.2% in May. The increase in inflation has a positive correlation with commodities prices, that increased in the last months. Overall, three shocks have combined to push inflation to record highs. First, a series of shocks to input prices and food prices. These include the failure of OPEC+ to meet production targets, rising natural gas and hence fertiliser prices, and now the ramifications of the war in Ukraine. All this has led to surging energy and food prices, with the relative price of energy rising far higher than the individual spikes experienced in the 1970s. Second, shocks to both the demand for and supply of industrial goods, which has shown up in record-high industrial goods inflation. Demand has been stoked by stimulus policies in major economies and the forced switch in consumer spending from services to goods during the pandemic. Supply, on the other hand, has been constricted by the sluggish rebound of industrial production from lockdowns, transport and logistics bottlenecks, and now “zero COVID” policies in China once again. Third, shock from economies reopening after lockdowns, which has triggered a rapid rotation of demand back to services – all while input costs have been rising and companies in the services sector, especially in tourism and hospitality, have struggled to find staff quickly enough to meet rising demand. That has led to rising services inflation. Trades summary: Sell 5.2% EXXON MOBIL (ISIN: US30231G1022) Buy 5.2% L+G-L+G ALL COMMODITIES (ISIN: IE00BF0BCP69) Sources: https://tradingeconomics.com/united-states/inflation-cpi https://www.theguardian.com/business/2022/may/11/us-inflation-consumer-price-index-figures https://www.ftadviser.com/investments/2022/05/25/inflation-increasing-faster-for-poorer-households-ifs-says/ https://www.ecb.europa.eu/press/blog/date/2022/html/ecb.blog220523~1f44a9e916.en.html
MSFJ International Commodity (Week Summary) We decided to sell all our share of Exxon Mobil. Since the start of our fund, this was among the most profitable trades we operated (+26%) in the equity part of our portfolio. Based on a chosen strategy of profit taking, we decided to take profit and reallocate the proceedings to ETFs. This will rebalance the split between equity and ETFs to 50:50. This was the same split we had at the beginning of the launch of this fund. We decided to bring the split of our portfolio back to 50:50 between ETF and shares as highlighted in our investment strategy. With the proceeds gained by the sale of Exxon Mobile we will buy 5.2% of L+G-L+G ALL COMMODITIES. This choice is backed by the insight that inflation rate have constantly increased in the last months: from 7.5% in February to 8.2% in May. The increase in inflation has a positive correlation with commodities prices, that increased in the last months. Overall, three shocks have combined to push inflation to record highs. First, a series of shocks to input prices and food prices. These include the failure of OPEC+ to meet production targets, rising natural gas and hence fertiliser prices, and now the ramifications of the war in Ukraine. All this has led to surging energy and food prices, with the relative price of energy rising far higher than the individual spikes experienced in the 1970s. Second, shocks to both the demand for and supply of industrial goods, which has shown up in record-high industrial goods inflation. Demand has been stoked by stimulus policies in major economies and the forced switch in consumer spending from services to goods during the pandemic. Supply, on the other hand, has been constricted by the sluggish rebound of industrial production from lockdowns, transport and logistics bottlenecks, and now “zero COVID” policies in China once again. Third, shock from economies reopening after lockdowns, which has triggered a rapid rotation of demand back to services – all while input costs have been rising and companies in the services sector, especially in tourism and hospitality, have struggled to find staff quickly enough to meet rising demand. That has led to rising services inflation. Trades summary: Sell 5.2% EXXON MOBIL (ISIN: US30231G1022) Buy 5.2% L+G-L+G ALL COMMODITIES (ISIN: IE00BF0BCP69) Sources: https://tradingeconomics.com/united-states/inflation-cpi https://www.theguardian.com/business/2022/may/11/us-inflation-consumer-price-index-figures https://www.ftadviser.com/investments/2022/05/25/inflation-increasing-faster-for-poorer-households-ifs-says/ https://www.ecb.europa.eu/press/blog/date/2022/html/ecb.blog220523~1f44a9e916.en.html