“Investors are the new smokers” claimed De Tijd in a recent headline. The government needed to find a new symbol of fair taxation after getting rid of the speculation tax and yet it again set its sights on investors. This tax is hardly what might be considered well-considered policy. There is also a risk that it will go the same way as the speculation tax, in which case it will end up in the trash within a year’s time.
Now that we have just passed the halfway stage of 2017, it is time to reflect on KEYPRIVATE. What yields have we made to date, which asset classes are strongly represented in our different profiles, and how many investors have already found their way to online asset management?
Starting in 2009, Lombard Odier Investment Managers pioneered this theme, which we believe is now more important than ever in the current environment of weak growth and a lack of demographic dynamism in developed countries.
Raising children is labour-intensive and time-consuming. From the day they are born, you have to keep an eye on everything: their health, safety, growth curves, sleep patterns… and make important choices along the way. Later on, you're in charge of their sports and leisure, their social contacts, and your agenda revolves almost entirely around your sweet darling.
Up until today, you could only benefit from KEYPRIVATE, our discretionary management solution, if you held an individual current account. We are now offering the option of signing up for this product using a joint account. Find out about the benefits of KEYPRIVATE and how to take advantage of them.
Keytrade Bank attaches great importance to the safety of the infrastructure used by its clients, both on the Keytrade Bank side, and that of the end user. On the Keytrade Bank side, adequate measures are taken in terms of infrastructure monitoring and security, but users also need to work safely with their computers in order to limit the risk of fraud and damage to both parties.
"Don't put all your eggs in one basket" How many times have you been given this good advice, dear reader? "The more you diversify, the better" is something we hear all the time. "It limits your risk, your returns are practically guaranteed, you will sleep better at night, you are safe",.... you know the refrain. Well, it seems that this is not always a happy tune.
We recently informed you that the speculation tax was going to be abolished; we can now tell you the exact date: Minister of Finance, Mr Johan van Overtveldt confirmed this on Finance Avenue: "As of 1 January 2017 the speculation tax is over and out, for good." This means no speculation tax is due on shares sold after that date. So any added value accrued this year and realised in 2017 will no longer taxed at 33%.
If you do nothing, you pay 51% tax on the dividends of a French company today. This is a combination of two taxes. On French dividends you pay 30% withholding tax in France. From the remaining amount another 30% of tax on income derived from securities will be charged in Belgium.
If I invited you to play a game, would you say yes? With prior knowledge that your chance of winning is around 99.95% and that if you win you'll almost certainly win thousands of euros? What's that you say? Yes? However, 95 per cent of Belgians prefer not to play this game, because they don't understand the rules and seriously underestimate their chance of winning. Their loss.
Just as Brexit was unexpected, Donald Trump’s victory in the United States’ recent election was an unpredicted occurrence. We reflect on the reaction on the financial markets, consider the impact on our KEYPRIVATE portfolios, and offer a brief overview of the possible trends in the coming months.
We are delighted to inform you that Keytrade Bank NV and Arkéa Direct Bank SA*, a credit institution under French law, (formerly Fortuneo SA), are today (3/11/2016) merging to form a single legal entity.
Hotel Mom and Dad has never been so popular as it is with millennial Belgians. By staying at their parent’s house, they have the opportunity to copy their lifestyle without having to spend the same amount as them. Millennials, made up of Belgians between the ages of 18 and 34, save on average 394.5 euro per month, approximately one-fifth of their income. This savings allows them to remain in the safety of mom and dad while exploring the world. This is at least the case for respondents of a 1.000 person study of Belgian Millennials done by Keytrade Bank.
We want to give you a treat, with five analyses from the De Belegger analysts. As a reminder, at the beginning of the year they did the same thing, recommending Barco, Umicore, NN Group, Royal Dutch Shell and GlaxoSmithKline as shares worth buying.
With several months to go before the US presidential election in November and the voting to fill all 435 seats in the House of Representatives and 34 seats in the Senate, Capital Group's US public policy and communications advisor Matt Miller believes that a number of outcomes are possible.
You must have heard of the saying "sell in May and go away". Statistical research reveals that the period from May to September is historically not such a favourable time for equity investments. As the period from October to April is much more favourable for investing in equities, it is better for investors to avoid the market in the summer months.
After years of disappointing growth figures, the tide seems to be turning for the largest emerging economies such as China and Brazil. For years, emerging markets have driven the global economy, before being slowed down by falling commodity prices. In recent weeks, several key economic indicators have been published that point to a turnaround. A further upturn in emerging market economies would clearly boost these countries' stock markets
At the end of June 2016, the financial markets were reeling from the shock of Brexit. Against expectations, the UK voted to leave the EU. With obvious consequences: share prices plummeted and the pound took a downward plunge. There were also growing expectations that Brexit would lead to an economic slowdown. Several key business confidence indicators have recently been published which point to this. Below are some examples.
In the hip neighborhood of Chatelaine, Ixelles, we spoke to Pierre Rousseaux. Pierre, a very hardworking and inspiring entrepreneur & founder of Yoga Room. He managed to find some time between giving yoga classes and driving around the country to meet suppliers to grant us a short interview about Crowdfunding, entrepreneurship and next steps for his booming business.
Even professional investors sometimes lose their bearings in the volatile markets that we have had for the past year now. So as a new investor, is it possible to activate a share of your savings, and still sleep soundly? How did KEYPLAN portfolios do after the Brexit referendum?
If we had to pick one word to describe 2016 on the stock market, then it would have to be volatile. This year investors have already had to go through doubts about Chinese growth, the tightening of monetary policy in the US and finally Brexit. The prices of shares, bonds and other assets moved very sharply when each piece of news broke.
In the past years we’ve had to go through it; growth countries have suffered seriously under the worldwide slowdown in growth, the drop in oil prices and the fear of a ‘hard landing’ for the largest growth market economy, China. Their stock markets have also dropped dramatically.
‘Investing isn’t for me.’ This must be one of the most clichéd things we hear about the stock market. Almost everyone thinks that the stock market should be avoided. It’s only good for wealthy people, bunglers and/or reckless speculators. Do you think so too? The fact that you’ve already read this far suggests that your opinion is a little more nuanced, at the very least. So carry on reading!
Keytrade Bank has a new shareholder: today was the date of the official share transfer from Crelan to Crédit Mutuel Arkéa, a solid French financial group. With this move, Belgium’s biggest online bank has now a shareholder that shares its strategy and vision and offers the advantages of scale and support it needs to challenge the position of the Belgian retail banks. This is a significant new step in Keytrade Bank’s history. Twenty years ago, it was the first bank in Belgium to offer online banking. Today it will continue to do so within the structure of Crédit Mutuel Arkéa in order to meet growing consumer demand.
Perhaps you again find the title hard to believe? Just like the previous one in this budding series? You are not alone. The stock market is an oasis of big myths. For example: if you want a higher return, you have to take more risks. I would like to refute this market rule here, even if it is set in massive stone.
For the average saver, the search for a reasonable return resembles, in the best case, an exercise in advanced mathematics. In the worst case, it resembles an exercise in medieval alchemy with complicated formulas, aimed at transforming iron into gold. But in fact your portfolio is simply following a few basic laws of nature that everyone understands.
The stock markets have not been performing well since the start of May. Is it true then that investors are better off calling it a day and going on holiday until October? We believe this advice is too extreme and we prefer the more moderate "Hold in May and go away".
The rise in the dollar seems to have ended around the middle of last year. Should we ready ourselves for a recovery of the euro, or does this simply mark the quiet before the storm and is the dollar preparing for a new climb? We continue to believe in the second option, from both a fundamental and a technical perspective: the dollar is taking a break and preparing for a new increase.
Until recently, investors shied away from shares from emerging countries such as China and Brazil. There was a preference for European or US shares. This was due primarily to doubts about the strength of the Chinese economy. But the tide seems to be turning: the economies of the emerging countries are recovering, capital is again starting to flow towards these countries, and the absolute/relative valuation of these emerging countries compared with Western stock markets is very attractive.
A few weeks ago, there was a major event in the history of US company Caterpillar. For the first time in around 90 years of stock market history, the world's largest manufacturer of excavators issued a calculated forecast of its quarterly earnings. For weeks, the company's management gave increasingly less subtle indications to the army of analysts that their forecasts for the quarterly revenue and earnings war far too high. The analysts agreed on a quarterly revenue of USD 10.2 billion and quarterly earnings of USD 0.95 per share for the supplier to the commodity and oil sectors. A few weeks before the quarterly figures were published, the management issued a (serious) earnings warning, stating that the quarterly revenue would be close to USD 9.3 to 9.4 billion and quarterly earnings would be around USD 0.65 to USD 0.70 per share, about 10% and 30% lower than the forecast, respectively.
If you find this hard to believe, you are not alone. We have been told for so long that the classical savings account is a reliable means of saving, and that if you'd rather spend your money than be rich, you should definitely invest in equities.
The ECB is trying to boost the economy with a low interest rate policy. Moderate inflation is in fact an ally, because with rising prices consumers will be more willing to make purchases instead of postponing them. In the Eurozone, however, Belgium is the only country currently recording inflation. Hooray for Belgium? Sadly not, for this is 'bad inflation': prices are not rising due to increasing demand but due to higher taxes and more expensive public services. However, the result is the same: your savings lose value (purchasing power), as the low interest rate no longer compensates for inflation. Unless, of course, you take action quickly.
The financial markets have performed some remarkable antics in recent months. On average, the European stock markets lost about 10 percent in this period. Equity investors will definitely confirm this, but the commodity markets have also experienced marked fluctuations. The winners in the first months, such as the price of gold and government bonds, generally did not top the list of favourites for 2016.
The financial markets had marked Thursday 10 March on their calendars. After all, a meeting of the European central bank was planned and the markets were gearing themselves up for a new round of quantitative easing measures in Europe.
President Mario Draghi of the European Central Bank (ECB) emptied his armoury. It was do or die for him and the ECB, a question of retaining credibility after the major disappointment in December. He announced a cut in all the interest rates, including a further reduction in deposit rates for banks who want park excess cash with the ECB, from -0.3 to -0.4%. To reduce the pain for the banks, a new TLTRO programme was also announced.
Multi-asset solutions have experienced a surge in popularity across Europe over the past few years – quickly becoming the most sought after investment strategies. These vehicles have become important components of retail clients’ portfolios, institutional mandates and even pension schemes, as they offer the benefits of liquidity, simplicity and relatively low fees – particularly compared to hedge fund counterparts.
The decision whether the United Kingdom will leave or not is creating increasing nervousness on the financial markets. The UK is, of course, an important major economic power and London is a global financial centre. Some observers fear that the UK's influence will dwindle if British voters were to vote in favour of Brexit.
It's old news that Belgians love saving. The impact of near zero interest rates has been enormous in our country. More and more people are realising that they are going backwards by continuing to save. It should then also come as no surprise that more and more people are wondering how they can continue to increase their wealth now we are faced with a near zero interest rate.
The extremely low (and even negative) interest rates are a worry to bond investors. Over the past few years, interest rate increases have often been predicted, but have never happened. Will this 30-year fall in interest rates never come to an end? As long as the following 6 conditions are not fully met, we do not see any immediate reason to expect a structural interest rate increase.
Interest rates on savings are at an historic low and are set to remain low for some time to come. Yet for people who tried to capitalise part of their assets, the year could not have gotten off to a worse start. In January 2016, stock market prices went deep into the red. So is this the time to buy?
The western stock markets experienced a disappointing start to 2016. Until further notice, no ominous developments have yet been detected in the sense that the upward trend has been positive since March 2009. Yet important sectors could feel the pressure in January, making the threat of a trend reversal on the stock markets seem very real. The following should be considered early warning signs:
The question of how to protect capital and better still, make it work, is not new. In the ‘Merchant of Venice’, William Shakespeare explains how the merchant always spreads his goods across different ships. That way, if something were to happen to one of the ships, he wouldn’t lose all his goods in one go …
Yet the momentum is still going in the wrong direction. Allow us to explain. China is dominating the current financial and economic news due to its slowing growth. The fear that China will switch to a lower economic gear has placed strong downward pressure on stock exchanges in emerging economies and the Asian region (excluding Japan). Expected yields have been adjusted, and prices have dropped as a result.
The first trading day of the new year is one we will not forget in a hurry. On Monday 4 January, the research company Markit published the PMI figures for a number of economically heavyweight countries and regions. The falling Chinese figures in particular caused shares to tumble on the Asian exchanges. The negative sentiment then spread to Europe and the United States. On average, the markets lost about 3% of their value last Monday.
Tuesday evening, 24 November. The opera house in Liège is the unique setting for a special event: live crowdfunding, organised by crowdfunding platform MyMicroInvest. Four start-ups are given five minutes each to present their project. The audience can log on by smartphone and submit an investment request there and then. A panel of experts makes comments and provides suggestions. The panel consists of Gaëtan Servais of Liège venture capital firm Meusinvest, Laurent Minguet of broadcasting group EVS and François Fornieri of Mithra Pharmaceuticals. José Zurstrassen, co-founder of MyMicroInvest, hosts the evening.
Geert Van Herck has been appointed Chief Strategist at Keytrade Bank, Belgium’s market leader in online banking and investment. Mr Van Herck, until recently a financial analyst at Leleux Associated Brokers, will take on the operational management of the Asset Management Service. His years of experience in the financial sector ensure that will be a vital part of Keytrade Bank’s innovation plans and the launch of its new online captial management platform.