After a rough start to the year, global assets delivered a poor performance in May.
With the risk of a recession in the U.S. growing, the first five months of the S&P 500. p 500 were the worst since 1970. In a sample of total assets tracked by Deutsche Bank, 29 out of 38 non-monetary asset classes realized negative returns. If it remains at that level at year-end, it will be the second-worst annual performance since 2008.
Deutsche Bank strategist Henry Allen pointed out in the May Asset Performance Review that the biggest change in markets in May was the shift in the global market narrative from "inflation risk" to "inflation risk" as investors struggled to cope with continued monetary tightening and the Russia-Ukraine conflict. "inflation risk" to "growth concerns".
But bad news can also be good news. Growth concerns mean investors won't be aggressively pricing in Fed rate hikes in the coming months. Indeed, May marked a milestone.2023 The implied policy rate, implied by December federal funds rate futures, fell for the first time in 10 months, dropping 12 basis points to 2.74 percent in May.
In addition, Fed Chairman Jerome Powell has emphasized that rates will be raised by 50 basis points each at the June and July meetings, with a more aggressive 75 basis points unlikely. That prospect of a rate hike has bolstered U.S. fixed-income assets, with U.S. bonds ending a streak of declines and accumulating a 0.03 percent gain in the first five months of the year.
As commodities continue to rise, it is becoming more difficult for inflation to come back down. in May, the euro zone's harmonized CPI rose 8.1% from a year earlier, reaching a record high. Although U.S. inflation fell to 8.3 percent from 8.5 percent, it was still higher than the widely expected 8.1 percent.
In Europe, soaring inflation has put more pressure on the European Central Bank to raise interest rates, with ECB President Christine Lagarde frequently signaling rate hikes. Pricing in the overnight index swap market has now risen from 88 basis points in early May to 119 basis points by the end of the year, meaning the ECB will raise rates at least four times this year, 25 basis points each time. EU sovereign bonds fell another 2.0% in May, the sixth straight monthly decline, amid expectations of aggressive rate hikes.
Next, let's take a look specifically at the best and worst performing assets in May.
Best performing assets in May:
Worst performing assets in May:
Related Q&A: ranking of the most precious metals 1, rhodium (Rhodium) - the world's most expensive precious metal reference price: 313,469.78 U.S. dollars / kilograms of rhodium metal is usually used in the lighting industry Rhodium is commonly used in the lighting industry, the production of mirrors; in the automotive industry, used as a catalyst, headlight reflector; rhodium is also known as jewelry, especially "white gold" scratch-resistant finishes. Rhodium is used as a bright and hard coating for other metals, for example on silverware or camera parts. Rhodium is evaporated onto the surface of glass to form a thin layer of wax, which creates a very good reflective mirror. 2, Palladium (Palladium) - Aerospace and automobile manufacturing indispensable key materials Reference Price: 71,406.81 / kg Palladium is a high-tech field of aerospace, aviation, navigation, weapons and nuclear energy, as well as the automobile manufacturing industry, indispensable key materials, such as palladium, the most important material, such as palladium, the most important material in the world. The most common use of palladium, for example, is in catalytic converters, which can convert up to 90% of all harmful gases in automobile exhaust into less toxic substances. Especially in the international precious metal investment market can not be ignored investment varieties. 3, gold (Gold) - gold has outstanding anti-inflation and risk aversion function reference price: 65,881.70 / kg gold is very wide range of uses, especially as a commodity collection and trading, not only for jewelry, gold in the cosmic navigation, medicine, electronics and other industrial sectors also play a very important role. 4. Play a very important role. 4, iridium (Iridium) - iridium is the most corrosion-resistant metal Reference Price: 52,887.98 / kg iridium is usually used in metallurgy, medicine, automotive industry, electronics, aviation and other fields. Products such as pen tips, compass bearings and balances, surgical instruments, computer storage devices, solid-state lasers, and low-thrust rocket engines are all made from this metal. It can even be used to treat cancer but this material does not apply to the jaw crusher. 5, platinum (Platinum) - platinum is the most valuable is never fade and tarnish reference price: 31,668.49 / kg platinum as a precious metal is used in jewelry and many industrial uses, including fuel cells, dental work, electronic components, medical, glass and oil. Petroleum. Laboratory equipment, cancer drugs, hard disk drives, spark plugs, turbine engines, etc. all involve platinum. 1, osmium (Osmium) - the world's densest metal reference price: 14,109.58 U.S. dollars / kg ruthenium is the platinum family of elements in the earth's crust in the least content of one, but also the platinum family of elements in the last to be discovered. It was discovered more than 100 years after platinum and 40 years after the rest of the platinum group. Osmium metal is extremely brittle, put in the iron mortar pounding, will easily become powder, osmium powder is blue-black. Osmium metal is very stable in the air, melting point is 2700 degrees Celsius, it is insoluble in ordinary acids, even in aqua regia will not be corroded. Osmium boils at 130 degrees Celsius. Osmium vapor is highly toxic, will strongly stimulate the mucous membranes of the human eye, serious cases will cause blindness. 2, ruthenium (Ruthenium) - ruthenium is the platinum system in the earth's crust in the least content of the element reference price: 8,680.70 U.S. dollars / kilogram (data: August 7, 2020) ruthenium is usually used in electronic products. Cheaper than rhodium and with very similar properties, it is commonly used in the production of electrical contacts, wires and electrodes. It is also used as a catalyst in electrochemistry. Another new use is as a cover layer for extreme ultraviolet light masks. 3, rhenium (Rhenium) - rhenium is more difficult to obtain than diamonds and expensive reference price: 2,821.91 U.S. dollars / kg nickel rhenium _ temperature alloys can be used in the manufacture of jet engine combustion chambers, turbine blades and exhaust nozzles These alloys contain a maximum of 6% rhenium to become the largest practical use of rhenium. Rhenium is the most practical use of rhenium, followed by its use as a catalyst in the chemical industry. Rhenium is more difficult to obtain than diamonds, and is therefore expensive. As rhenium can be used in high-performance jet engines and rocket engines, making it very important in military strategy. 4, silver (Silver) - silver conductivity and heat transfer is the highest metal reference price: 896.52 U.S. dollars / kilogram of pure silver is a beautiful silver-white metal, it has a very good ductility, and its electrical conductivity and heat transfer in all of the metal are the highest. is the highest. Silver is one of the metals discovered in ancient times. Silver occurs in nature as a single substance, but mostly in the chemically synthesized form. Silver has a high degree of ductility, so it can be crushed into only 0.00003 cm thick transparent foil, 1 grams of silver particles can be pulled into about two kilometers long filaments. 5, indium (indium) - indium is the earth's softest metal reference price: 229.28 U.S. dollars / kg of indium in the semiconductor industry is most commonly used in alloys, solders, and soft metals, high-vacuum Seals and other products. It was used to coat airplane engine bearings during World War II, but is now used to make more corrosion-resistant mirrors. Related Q&A: Which platform do I trade precious metals on? What are the recommendations?Investing in precious metals, we have to choose the platform first. How to choose the platform? Many investors will look at the platform ranking. The platform ranking is useful? Of course it is useful, investors can according to their own needs, combined with the ranking, choose the right precious metal trading platform. Domestic precious metal platform ranking: which platform is good to choose? Platforms with strong wind control tend to have better rankings!
1, what is the wind control ability
Wind control ability, simply put, is the ability to protect the investor's principal and profit, reduce or control losses. Generally in the wind control ability stronger platform trading, investors can get more benefits. How do precious metals trading platforms with strong wind control capabilities usually help investors reduce risk? This is often reflected in the two aspects of slippage risk and cost size.
2, adhere to the limit trading platform, wind control ability is stronger
Spot gold trading leverage can amplify the gains, but also amplify the loss; and spot gold trading market fluctuations are intense, even professional analysts can not be 100% correct prediction of market changes. Therefore, to give full play to the leverage of spot gold trading to amplify the advantages of profit, to avoid amplifying the disadvantages of loss, we have to do a good job of wind control measures.
Investors would be wise to use a limit platform for strict stop-loss stop-loss settings to maximize the protection of profits and principal and limit losses. Ordinary market price platform in the market fluctuation is intense, especially when jumping up and down, there will be slippage trading, stop loss will exist the possibility of failure. Daejeon Global Precious Metals for the typical limit trading platform, commitment to no slippage, can be in any market characteristics, are to ensure that the smooth progress of the transaction, to bring the investment of the greatest security and stability of protection.
3, the platform spread cost is small, will further reduce the risk of investment
As we all know, investment in precious metals spot, need to pay the spread fee. Spread charges will discount the principal and profit, if there is a loss, it will also increase the risk of bursting the position. In the general platform trading 1 lot of spot gold, you need to pay the spread fee of 50 U.S. dollars, if trading 10 lots, the spread fee will increase to 500 U.S. dollars.
Then how to reduce the cost? In addition to controlling the frequency of transactions, investors can also choose to micro spread trading account, micro spread account to select the market's best offer, to provide the best spread, the investor trading 1 lot, the average spread fee of 15 U.S. dollars, the lowest spread fee of 10 U.S. dollars. As the number of lots traded increases, more cost savings can be realized, which is another insurance policy for the principal and the established profit.
Summary
Ranking of Domestic Precious Metals Platforms: Which One to Choose? In the ranking of domestic precious metal platforms, those trading platforms with better wind control capabilities usually have better rankings. Platforms that adhere to limit trading and have smaller spreads have stronger wind control capabilities and are more effective in protecting our principal and established profits, as well as limiting losses to a certain extent, making them more worthy of our choice.
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