Written by NEBA Team,
Markets are in turmoil as Trump wins. Here are some of the more prominent effects: Oil is down 2-3% to about $43 a barrel. £ makes a comeback as the USD suffers.
Diagram 1: Hourly graph showing the huge rally in the Pound vs US Dollar
- Stocks Sell – off in his road to victory
- Indices of open markets in Red (Refer to Diagram from MSN Money)
Diagram 2: Indexes in red as markets around the world open this morning
Some Questions for Investors to ponder over:
Where will markets go from here?
- Will this be the trigger to another recession that analysts have been predicting with the overheated S&P 500 and its overdue bullish run?
- Or will it be like another Brexit, where there was a short-term exaggerated effect on markets worldwide but relatively muted in the long run, where it had little impact on the British economy?
NEBA Financial solutions offers the perfect investment solution to investing in distress times:
– Structured products
Some of the advantages of Structured Products / Notes:
|1. Most Importantly – Protection Barriers
Structured Products provide capital protection to a certain degree of downside (customisable to investor’s risk’s appetite). What this means is that investors are able to heave a sigh of relief even when markets take a downturn.
As their initial capital is still 100% protected if the underlyings do not fall past their protection barrier, as opposed to funds where your capital is typically subjected to the performance of stocks and indices with no element of capital protection.
|2. Longer Tenures
With respect to recessions and corrections, Structured Products or Notes with a longer lifespan allow for markets to rally after their bearish fall and remain within protection barrier for maximum capital protection even after suffering a recession and yet continue to chase yields in the form of coupons.
|3. Memory Feature
A feature that’s perfect for recessions and long term corrections as the likelihood of missing coupons will be high and could probably be last for years. They allow all missed coupons to be earned as long as the worst performing falls above coupon trigger on any observation date.
What is your strategy?
As investors, we are always in search of yield and alpha. As the saying goes, money never sleeps. Are we to not invest endlessly for months and years while waiting for that “perfect opportunity”?
Alternatively, there is the option of investing in NEBA structured products that caters to your investment needs and offers the opportunity for lower yields but with the element of capital protection in this highly volatile and bearish environment.
Visit www.nebafinancialsolutions.com to see our Structured Products and UCITS Funds http://www.nebafinancialsolutions.com/Risk-Rated-Portfolio-DFM, http://www.nebafinancialsolutions.com/real-asset-fund