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Element ONE results. October

Element ONE 
Issuer: ELEMENT ONE LTD  
ISIN Number: VGG299771086 
IssueDescription: USD CL B SHS 
ISO CFI: CICXXX

In October 2020 Elemеnt ONE Fund showed a result of +1,62%.

S&P 500

In October, the stock market showed multidirectional dynamics against the uncertainty of the US elections. The overall decline in the S&P 500 index at the end of the month was 2.77%.

The market does not expect any serious changes in the vector of monetary policy, regardless of who will be elected as the next president. Meanwhile, on other global issues, candidate programs differ significantly.

Dynamics by sectors in the S&P 500 index:

Financial statements of companies (S&P 500) for the third quarter of 2020. In 10 out of 11 sectors, companies report declining profits (YoY). The oil sector has become an outsider.

The dollar index in October showed almost neutral dynamics, increasing by 0.19%. The Russian ruble has fallen in price against the US currency by 2.57% and at the end of the month the price was 79.61 ₽ / $.

Central bank rates 

FRS: 0.25% (PREV 0-0.25%)

ECB: 0% (PREV 0-0%)

CB RF: 4.25% (PREV 4.25%)

Labor market

USA, unemployment rate: 7,9% (before 8,4%)
RUS, unemployment rate: 6,3% (before 6,4%)
Eurozone, unemployment rate: 8,3% (before 8,1%)
China, unemployment rate: 5,4% (before 5,6%)

Crisis

US federal budget deficit:

Public debt in % of GDP (developed countries – blue, developing countries – red):

Sanctions 

  • The foreign ministers of the 27 EU countries made a political decision to impose sanctions over the Navalny incident.
  • EU countries agreed to impose sanctions against Lukashenka;

Oil

The oil market showed a significant decline.
The cost of the WTI brand decreased by 14.22% – from $42.91 to $36.81.

The number of oil rigs in the world in 2020 compared to the 5-year average:


Oil Sector Bankruptcies in the US and Canada in 2020 (under Chapter 11):

Oil reserves:

Gold

Gold fell 1.22% in October from $1903.2 to $1879.9. Our expectations for the growth of the precious metals market in the medium term remain.

СOVID-19

According to the WHO, the level of “pandemic fatigue” in some countries has reached more than 60%.

Dynamics of infections by country:

Element ONE fund

In October, the Element ONE fund showed +1.62% versus -2.77% of the S&P 500. Due to the increased volatility, the fund’s defensive positions showed a significant increase in value. On October 23rd, we entered a long position in the Chinese auto company Li Auto. The company’s quotes were up 10 percent by the end of the month. 

You can read more at https://invest-idei.ru/idea/li-auto-inc-intellektualnyy-elektrokar-3128. Raison Asset Management in October was on the 3rd line of the independent rating of analysts invest-idei.ru. The fund’s shares valued at $1,715.15 in October.