Analysis
Crown bond funds are in deep loss over the past year
The offer of bonds on the Czech market is wide and completely confusing for the retail investor. Therefore, those who are considering investing in bonds have the opportunity to do so through bond funds, which is probably the most acceptable form. However, the vast majority of bond funds denominated in Czech crowns have posted negative returns over the past year, which is exacerbated by high inflation. Those who bet on a fixed-term deposit at this time have probably been better off, although even in this case rates are well below inflation.
ContinuedThe koruna-euro interest rate differential is the largest in 20 years: Czech companies are losing interest in the koruna
Czech companies started to prefer loans in euros instead of koruna earlier. But since the outbreak of the coronavirus pandemic, their appetite for euro loans has started to increase and has grown dramatically in the last twelve months. The interest rate differential between koruna and euro interest rates is the largest in two decades, to the detriment of the Czech currency.
ContinuedStagflation in the European Union will happen if people become scared of a real decline in their incomes
Inflation in the European Union is accelerating every month. While in February the price level in the EU-27rose by 6.2 per cent on average year-on-year, in March it was already 7.8 per cent. A year ago, the annual inflation rate stood at 1.7 per cent and some countries (Greece) were even experiencing relatively strong deflation.
Continued2022 is not yet a good year for European technology companies. Uncertainty is fuelled by the war in Ukraine
Technology companies experienced an unprecedented boom during the coronavirus pandemic, as it allowed people and companies to operate without major negative impacts, even with restrictions. And they have been duly rewarded by investors on the stock markets. They ended last year at their all-time highs.
ContinuedTOP 10 European technology companies announced, SAP is number one
The European technology leader is the software company SAP, originally from Germany, followed by the industrial-technology concern Siemens, also based in Germany, and the third place was taken by the Irish Medtronic, which is active in medical technologies. The ranking of Europe's top 10 technology companies, based on data from December 2021, was compiled by brokerage company BCM Begin Capital Markets (BCM) and published in January this year.
ContinuedHow to hedge against rising commodity prices - buy shares of their suppliers
Energy and commodity prices are rising disproportionately to wages, and no one knows how high they can rise. The sharp rise in electricity is raising food prices, and a significant increase can be a problem for low-income groups. Among the vital commodities whose prices affect everyone, we can include electricity, water and gas. Can investing in producers of these commodities be a good choice to compensate for the high rise in prices of these commodities?
ContinuedRisk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 85.61% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Please read the Risk Disclosure.