Article by Masahiko KUMADA
Recovery in progress
With the approval of Merck’s and Pfizer’s oral antiviral COVID-19 drug, the world seems to be getting brighter all at once. In the U.S., travel-related stock prices are skyrocketing.
Ticket bookings by airplane companies are increasing greatly, and sales of travel bags are rising. With the gradual opening of the world’s immigration systems, there will be a recovery in the flow of people. During this period, the world’s central banks have been easing monetary policy to support the economy.
The governments have also been mobilizing public finances. Which led to excess money flowing into the stock market. As a result, some funds have stopped accepting new funds because of the excessive inflow of funds.
In addition, passive funds have recently become the dominant type of funds. The large number of funds that flow into the market are automatically distributed to certain stocks that must be included, causing the stock prices of companies with a market capitalization of several trillion yen to move by as much as 5% in a single day. The movements of Tesla and NVIDIA over the past few days have been unthinkable in the past.
What about trend-following funds?
On the other hand, trend-following funds, especially those that invest in commodities, have been performing very well. In addition, some funds managed in Crypto (Bitcoin, etc.), which can be said to be special funds at the moment, are starting to generate returns of 200% or more. Approval of BTC’s ETF may also become a major part of fund management in the future.
Masahiko KUMADA
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