Let’s face facts. Investment returns these past few years have not been pretty. Portfolios are shrinking, manager scandals continue to rear their ugly heads, and investors are frustrated.
Interestingly, the Goldman Sachs Asset Management 2017 Annual Survey reported less pessimism about the economy in the global insurance industry than in the past few years. Specifically, it reported that just 36% of insurers believe their investment opportunities are getting worse as compared to 48% in the 2016 survey and 63% in the 2015 survey.
The fact still is that investors are still pessimistic and suffering from continued poor manager performance. In my view, that’s not a great story for investors at all. What is the real challenge here and are there any possible solutions?
One solution to evaluate, for sophisticated investors, is the FX market, which trades a volume of $5.3 trillion per day and represents a great way to give your investment portfolio an Alpha boost in today’s dynamic global business and political climate. Unfortunately, with the potential of high risk in the market it can be difficult to identify the best FX managers with whom to invest, and therein lies a challenge. With such a large number of FX offerings, it is important to do the proper homework before making a decision based on facts.
For example recently, the largest FX brokerage in the world was completely shut down and barred for life from doing business in the United States for trading against its clients, which is a theme that occurs far more often than most realize. The firm, FXCM, took positions against clients and was charged with slipping the pricing on the bid/ask on both entries and exits, including buy/sell stops, resting entry orders and limit orders. This meant that when the order was entered into the system it would slip the price one way or the other and cheat the clients out of their earnings or their entire trade in many instances. Many times, the traders would slip prices on stop losses on news events by hundreds of points and simply take the client’s money from them. In addition, FXCM was accused of manipulating market price and found guilty of widening the spreads during news events that made it nearly impossible to exit trades with a profit. Yikes! Who couldn’t be happy to see a lifetime bar for that lack of integrity. Unfortunately it happens all too often within firms that are not STP, or straight through processing price providers; and those firms are fewer than wider.
Another important solution is the upcoming final FX Global Code of Conduct which is expected to be published in the coming weeks. The new code is the work of The Foreign Exchange Working Group (FXWG) which was established in July 2015 by the Bank for International Settlements to strengthen principles and code of conduct standards in foreign exchange markets that provide brokerage, execution and settlement. Clearly, the need for a “single set of common guidelines and principles of good practice for responsible participation in the wholesale FX Market” is clear and has been needed for some time. With this new code in place, investors will benefit from added assurance that the global FX market is operating in an open and transparent manner in accordance with market standards. Therefore, a key takeaway is that any trade manager combined with the brokerage they use who are not transparent, do not need your business, nor do you need the risk.
A suggested solution with the potential to provide investors with a much-needed portfolio boost lies in FX systems that use artificial intelligence and advanced algorithms to trade the Forex, Spot and OTC Options markets. Firms such as Mediatrix Capital, Inc. are able to achieve consistent and above average returns for ECP rated investors through trading and speculation in FX Spot, OTC FX Options and Spot Currencies, and Gold, Silver, Platinum and Palladium trading.
Indeed, the Mediatrix Capital team has deep-seated experience and knowledge of the fundamental and technical factors affecting various markets and understands how to identify optimal trading opportunities through the use of these sophisticated trading systems. The use of proprietary world-class algorithms and a short-term Spot FX currency correlation methodology has been able to generate an exceptional track record for investors benefitting from full transparency and short-term client liquidity. As of May 2017, Mediatrix has achieved 41 straight months of client gains, from December 2013 to the present date with verification available.
Overall, there is a silver lining amidst the cloud of investor pessimism and here’s hoping the road becomes less bumpy as the balance of 2017 unfolds!
Disclaimer: In no event should the content of this material be construed as an advertisement, express or an implied promise, guarantee or implication by or from Mediatrix Capital Inc. (MC) or any of its partner or subsidiary companies. This is not an attempt to sell or solicit any security and should not be taken as such. The content of this document is for informational purposes only. Potential Accredited Investors are advised to carefully read the Disclosure Documents to determine whether a managed investment in MC is consistent with their financial situations and investment objectives. Past results are no guarantee of future performance. Mediatrix Capital is a foreign corporation based in Nassau Bahamas, and does not operate within the United States.