09-Nov-2017
Perspectives November Publication

Welcome to the ninth edition of Perspectives.
 
Many investors were expecting some type of market correction in October, but the only thing that crashed last month was volatility. Despite being historically the most volatile month of the year and even as we commemorated the 30th anniver­sary of the Black Monday stock market crash, October 2017 happened to be the calmest on record for equities. Indeed, the CBOE Volatility Index recorded the lowest monthly average in its history, according to data compiled by Bloomberg. 

While most market observers point towards Bitcoin and the Nasdaq as an accident waiting to happen, this edition of Perspectives takes a close look at another bubble, namely the 8 trillion dollars of bonds currently trading at negative yields. The “Hot Topic” of the month is about Japanese equities, which is breaking out from a 20-year trading range. To our opinion, there are reasons to believe that this time the recovery could be for real.
 
We then have a look at Search Funds, a niche within Private Equity. The Middle East equities section focus on the Trade & Logistics in the UAE. Last but not least, we shed light on a very important development for Al Mal – our partnership with Azimut, one of the largest asset managers in Europe. We explain how this partnership and the move to a UCITS fund format will enable us to promote our Middle East equities strategy beyond the GCC borders.
 
We hope you will enjoy this issue.

Download PDF