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Welcome to our blog – a place to discuss and exchange thoughts and ideas about iX-7 Asset Management SA, the stock markets and all matters relating to wealth management.


Articles
Tuesday, August 3, 2021 by Mr Schmid|Comment closed
within category Dynatrac Inc,DT,APM,SaaS,Digital opportunity,Digital
Dynatrace is a leader in the Application Performance Monitoring (APM) segment. It proposes a single-agent model, allowing customers to monitor the performance of applications with the help of AI. The platform is being deployed as a SaaS solution (digital subscriptions, which is the fast growing ind…
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Wednesday, June 30, 2021 by Mr Schmid|Comment closed
within category Silver and gold crash,Gold
Gold prices on the move!
There is good reason to be cautious on gold. Yet, longer term, the positive outlook remains intact as central banks keep a lid on interest rates.
Recently, the gold price god was penalized by higher real interest on the back of the Fed’s hawkish shift. One can expect that…
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Tuesday, June 29, 2021 by Mr Schmid|Comment closed
within category Rolls Royce,Industrials,Aviation
Rolls-Royce
In less than two years, shares of British aerospace giant Rolls-Royce have dropped close to 90%! COVID-19 hurt this company particularly hard. As of now, the company has a market cap of some GBP 10 billion, which makes it still very sizeable.
This is a company that's been around since…
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Friday, June 25, 2021 by Mr Schmid|Comment closed
within category Top Down View,European economic recovery,GDP
Outlook going forward
As of now, the dominant market conversation is about tapering. In fact, the FED started to spell-out a plan to implement tapering its asset purchase program. Also, it provided hints about a possible rate hike next year.



Ever since the start of the pandemic, the FED ha…
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Wednesday, June 23, 2021 by Mr Schmid|Comment closed
within category Top Down View,Investment themes,Investment outlook
July 2021: Top-Down View
Inflation: These days, all the attention is on inflation. That there would be a catch-up effect was clear; however, the extent of it might surprise more than just advised investors and economists. While supply-side effects are a big part of the current inflationary pressu…
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Tuesday, June 22, 2021 by Mr Schmid|Comment closed
within category Tesco
Tesco bans PLA and biodegradable plastics from its sourcing materials list.
Tesco's 2020 preferred packaging list bans all compostable and PLA and biodegradable materials, as customers cannot easily recycle them. Other retailers may follow suit, acknowledging that while PLA has a part to play in s…
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Tuesday, June 22, 2021 by Mr Schmid|Comment closed
within category Veolia
Veolia is the global market leader in the provision of environmental solutions to industrial and municipal clients. It is involved in the entire value chain of water (supply of drinkable water, wastewater treatment), waste management (collection, processing and energy/material recovery) and energy …
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Tuesday, June 22, 2021 by Mr Schmid|Comment closed
within category Danone
Danone's portfolio is focused on health and nutrition, with strong positions in chilled dairy, water and nutrition. It aims for 3-5% LFL sales growth and a mid-to-high teen recurring operating margin in the medium term, which we believe are credible targets.
Danone's targets, in our view, are sli…
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Tuesday, June 8, 2021 by Mr Schmid|Comment closed
within category CBDC,Digital Currency,Digital opportunity,Central Bank policy
Background 
We believe that COVID-19 will be entering the history books as a turning point in terms of an unbounded approach for central bank policies and measures taken to kick-start the economy. The manner and the persistence of the central banks’ actions to counter-act the market dislocation of…
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Saturday, May 22, 2021 by Mr Schmid|Comment closed
within category Inflation,Equity market Valuation,Debasement,Demographics,Digitzation,Deglobalization
For the time being, we consider that the most recent spike in the rate of inflation is transitory. But what if it is more than just a glitch?
The post-pandemic business cycle is indeed at full speed, and this comes with some issues such as the supply-chain bottleneck in the semiconductor busi…
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Wednesday, May 19, 2021 by Mr Schmid|Comment closed
within category Top Down View,Central Bank policy,Inflation,Monetary expansion,Monetary Policy
Last week, markets entered the phase of consolidation and correction that had been expected to happen for quite some time now. Therefore, while we are still tilting towards growth, we are taking a more defensive stance.
While we have been witnessing the partial death of “goldilocks”, we will conti…
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Monday, May 17, 2021 by Mr Schmid|Comment closed
within category Urbanisation,Green Technology,Electric-Vehicle Adoption,EV
Costs and Benefits of Urbanization

Urbanization offers several benefits. Telecommuting and infrastructure investment offer ways to maximize them. Urbanization has both benefits and costs. In a market economy, the trade-off between benefits and costs determines the level, speed, and pace of urban…
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Tuesday, May 11, 2021 by Mr Schmid|Comment closed
within category Top Down View,CPI,Equity market Valuation
Rising inflation fears seem to be the one of the reasons of yesterday’s correction. The bond market has lifted the five-year inflation outlook to the highest since 2006, while one of the oldest hedges, gold, is holding near three-month highs. Oil is also dropping. All of which means tomorrow’s U.S.…
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Tuesday, May 4, 2021 by Mr Schmid|Comment closed
within category Top Down View,Tactical Allocation,Reopening,Supply Chain,Online travel market
Reopening: It’s all About Available Capacities


High expectations around reopening of the economy are mostly priced in by markets. This strengthens our cautious view on some sectors.  
Over the past month, different avenues to recovery were published by the major search houses. While the major…
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Friday, April 30, 2021 by Mr Schmid|Comment closed
within category Pinterest,PINS,Advertizing
Pinterest stock lost about 11% on Tuesday - March 27, 2021 - after the release of its earnings report for the first quarter of 2021. While the financial numbers were actually very strong, management provided fairly low guidance numbers for user growth.


The narrative was that market expect big …
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Thursday, April 29, 2021 by Mr Schmid|Comment closed
within category Technology Disruption,5G,Semiconductors,Fintech,HealthCare,Healthcare Services,Unemployment,Internet-Bubble,ESG
Consolidated research data from major investment banks suggest that 81% of surveyed investors believe that the market is in a bubble state, in particular the ultra-growth stock segment.


But at the same time, the data suggest that the same investors stay invested and look beyond the current b…
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Tuesday, April 27, 2021 by Mr Schmid|Comment closed
within category Corporate tax cut,Tax rate,Economic outlook,ESG,Social security
I am in favor of a 0% tax rate!


The Biden administration put forward a proposal to almost double the capital gains tax for the richest Americans. The proposal echoed a big disapproval from private investors, Wall Street, Silicon Valley partners, and financial lobbyists geared up to influence t…
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Monday, April 26, 2021 by Mr Schmid|Comment closed
within category Business confidence,European economic recovery
Business confidence keeps improving in the eurozone. The gap between manufacturing and services is reducing, as people are getting more confident about the reopening due to the acceleration in the vaccination campaign.


Loose financial conditions are also helping. The economic recovery in Europ…
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Monday, April 26, 2021 by Mr Schmid|Comment closed
within category EPS,Forwward Valuations,European economic recovery
Strong economic growth expectations will drive forward EPS expectations. We expect a figure of +20 for the EuroStoxx!
As long as these growth expectations hold true, the bull equity market is expected to continue. it will be difficult to see the end of the bull market barring exogeneous events.…
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Sunday, April 25, 2021 by Mr Schmid|Comment closed
within category Shareholder,Shareholder value,Profitability
What is shareholder value?
The short, refreshing, and simple answer is ROIC > WACC. 

 
 
 
 
 
 
But the real question is how is shareholder value created? 


In an academic world, a company has different means to create shareholder value. In essence, there are three main strategies f…
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