After a four month period of hope and growth, market participants seem to have lost confidence that a settlement of the trade and tariff conflicts could happen anytime soon. Similarly, EU and UK appear to veer away from a Brexit-deal rather than getting closer to an agreement. This caused – fears of an upcoming global recession returned and let markets go into reverse. E.g., developed economies’ equity indices declined about 5% in May, with Japan’s Nikkei holding the red lantern with realizing losses of 8%.
Consequently, it does not come as a surprise that all robo-advisors partaking in the official Brokervergleich test setup have experienced negative performances in May 2019, ranging from -0.8 to -3%. On a closer look at the ranking, however, an interesting observation can be made: compared to previous performance comparisons, the ranking order in May seems to have reversed for many robo-advisors. Offerings such as “Ginmon” or “fintego”, in previous months consistently in the top 5, are now found on the lower tail of the list. The reason for this, however, remains unclear. Clearly, we will follow up on this subject in the light of further developments in the next months.