Dear investors,
July was a weak month for the AEX, with a decline of 1.23%.
Before July, the figures for the RVM systems were: RVM Strategy +0.85%; RVM Retirement +0.85%.
Both systems therefore outperformed the AEX.
What did we see at the market?
UNCERTAINTIES ABOUT WORLD TRADE CONTINUE
The main reason for the weak performance of the Amsterdam stock exchange, following an already weak June, is related to the uncertainties that still surround trade with the United States. We don't need to dwell on this any further; it is what it is as long as we have this government in place. There will be drama every day, and it will continue. Ultimately, the figures from the business community will reveal how the economy is really performing.
EURO VERSUS US DOLLAR
July was the first good month of the year for the dollar, with the sharp decline we have been seeing throughout the year being temporarily interrupted, which was good news for investments in the US. However, our trend analysis remains unchanged: the dollar has entered a long-term downtrend against the euro, and that will not change with just one good month for the dollar.
The weakening of the dollar will be beneficial for US exports, but will hamper international investors. This is obviously not good news for the US debt position either. August is still young, but for now the dollar has resumed its decline this month.
HOW DID THE TRADE GO?
There were no particular issues with the systems, except that short-term trends were very unclear and therefore it was not always possible to take a position that was consistent with the system.
That concludes this update.
Good luck with your investments!
Sincerely,
On behalf of Van Megen Systematic Trading,
Ruud van Megen
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