July 2018: Altiaca EUR-Asia Emerging Fund: +1.24%

During July the positive momentum for the Emerging Markets returned. We took a little leverage to profit from this sentiment. Especially Eastern Europe performed well with more than 8% return on this part of our portfolio. This was also our largest position.
Next to this also India performed well after we returned to this market. Russia was slightly positive during June. The combination of sanctions and negative press in the world still makes this market seen as high risk. At the other side there is China and Turkey.
The full blown trade war between the USA and China is hurting the equity markets of China. After decades of tremendous growth and also growing trade surpluses in combination with aggressive industrial espionage China now has to change. President Trump made his statements and executed them also directly. Something the Chinese leadership was not totally prepared for. Still we see unbelieve among Chinese officials. However the USA can sanction a lot more than the Chinese government. This trade war is one which can only be won by the USA.
Erdogan is warned by this. The threats of Trump are not empty like a lot of other Western politicians. In combination with a worsening economic situation and loosing trust of global investors, Turkey is on the brink of an economic disaster. However our technical indicator keeps a positive signal.