- 20 OktHow will the US elections influence your portfolio?
- 25 SepAre better times for quant investing on the horizon?
- 26 AugFama/French going through its biggest drawdown since 1963
- 17 JulVector 2020 Semi-Annual Review
- 25 JunA Look At Post-Corona Market Valuations
- 25 MaiUnprecedented times call for unprecedented measures...
- 23 AprVector's outlook on the Corona Crisis
- 13 MärMarket correction: sense or sentiment?
- 17 FebThe market and sector concentration
- 14 JanNotice to shareholders
- 31 DezVector 2019 Annual Review
- 17 DezFama/French going through its second biggest drawdown since 1963
- 15 NovThe Alpha Lifecycle
- 16 OktVector 2019 Q3 Review
- 10 SepA new prospectus
- 14 AugMarket Review: July
- 10 JulVector 2019 Semi-annual Review
- 14 JunAre factor premia disappearing?
- 21 MaiHow persistent is regional outperformance?
- 12 AprMarket recovery: sense or sentiment?
- 12 MärMarkets solidify recovery
- 12 FebStock Markets Rebound
- 31 DezVector 2018 Annual Review
- 14 Dez2019 (outrageous) predictions!
- 20 AugTemperatures and stock markets heat up
- 18 JulVector 2018 Semi-annual Review
- 14 JunDo exporters suffer during trade wars?
- 15 MaiStrong earnings put markets on the road to recovery
- 17 AprQ1 Overview
- 13 MärStock Markets: Episode VI: The return of volatility
- 02 MärVector wins Morningstar Germany and Belgium Awards!
- 22 FebVector Flexible wins De Tijd/L'Echo Awards for the third year in a row!
- 16 FebNavigator wins Morningstar France Award!
Strong earnings put markets on the road to recovery
15 Mai 2018
After a rather depressing and volatile first quarter, the markets took their first steps on the road to recovery in April. Europe and the UK were the months biggest winners, with returns of 4.6% and 4.7% respectively. Even if we account for the strong Dollar appreciation (+1.8%) these returns still overshadow those of the United States (+2.2%) and Emerging Markets (+1.3%) by some margin. Emerging Markets in particular lost a significant part of the lead they had built up during the first quarter of 2018.
Yet, on the whole prices trended upwards during the month in all regions. Much like the reported earnings did… In the US the first quarter earnings are showing exceptionally strong momentum: EPS are growing at a pace of 23% and more than 75% of the reporting companies have beaten the analysts’ expectations! Moreover, results that are coming in from Europe show a similar pattern. So, while earnings momentum stocks were April’s biggest winners we concurrently saw an unfavourable rotation out of price momentum and quality stocks.
Vector Navigator (+2.1%) and Flexible (+0.7%) performed slightly below their benchmarks during the month. Yet, over a 5-year period the fund is still easily beats more than 90% of the competition. Flexible is beating 66% of the competition this year and 94% of the competition over a 5-year period.