Greetings from a Millennium Trader to the Millennial Traders!
CEO Mario Becker shares the invaluable lessons he has learnt from his investment journey as a a professional investor through the millenium and advice he has for millenials looking to embark on their investment journey today.
"Dare to trust the market overall, as it will always reflect realized and projectable profits of successful companies, not hoped-for profitability of great sounding ideas!" - Mario Becker
DFO Reflections Q2 - 2021
The second quarter of 2021 continued much of the same trends as the first quarter: Equities of small and mid-sized companies, as well as more cyclical industries and slow-growth segments (keyword “value”), outperformed. Shares of developing countries saw a strongly differentiateddevelopment: Shares of commodity exporters such as Saudi Ara-bia and Russia saw strong price gains, whereas Chinese shares could not reverse the negative trend since February and selectively even traded in the red. Even the celebrations for the 100th anni-versary of the founding of the Chinese Communist Party could not ignite any price fireworks here.
The “stay-at-home stocks” and shares of high-quality and less cyclical companies, which were neglected in the first quarter, saw strong price increases in May and June such that we can no longer speak of “hibernation” here. It would have been a big mistake to say goodbye to these stocks for short-term considerations, as they would now have to be bought back more expensively.
DFO Reflections Q1 - 2021
In many respects, the first quarter of 2021 followed the performance of the final quarter of 2020: shares of small and medium-sized companies as well as developing countries continued to outperform; shares of cyclical industries also rallied strongly, whereas so-called ‚stay-at-home stocks‘ or shares of companies with high-quality and less cyclical earnings underperformed. China and Hong Kong saw an exuberant bull market.
DFO Investment Yearbook 2020
Enclosed you will find the 3rd edition of our DFO - Investor Yearbook.
The aim of our Yearbook is to show which return expectations for global capital markets and various asset classes are realistic and sound. Unfortunately, neither investors nor financial advisors seem able to define realistic long-term return expectations for common equity and fixed income markets. This makes them vulnerable to unrealistically high but also unrealistically low expectations. Neither is helpful, as opportunities are missed on one hand, while excessively high expectations can easily be disappointed on the other. By providing very specific data and information, we want to contribute to making it easy for more investors to find out which expectations are reasonable.
DFO Reflections Q4 - 2020
The final quarter of 2020 followed the good performance of previous quarters. Particularly corporate bonds (which were badly hit in the spring and whose returns were far behind those of government bonds) saw a massive recovery. This recovery was so strong that our investment components, which mainly contain corporate bonds, ended the year with higher total returns than those consisting mainly of government bonds. While this is quite normal, the crash in the spring of 2020 once again showed that corporate bonds should not be seen as „crash insurance“ – a fact that should definitely be taken into account when constructing quality investment portfolios.