OREANDA-NEWS. Hansabank will be offering its new 2-year investment deposit USA Top 500, whose underlying asset is the S&P 500 Index, from 29 August to 18 September, reported the press-centre of Hansabank. 

The US stock markets have been in a decline for more than a year, but many analysts believe that the United States are becoming attractive once again. “It is impossible to say whether the bottom has been hit or when it might happen, but the confidence of investors in the future of the US economy has increased somewhat despite the continuing difficulties of the financial and real estate sectors,” said Simmo Sommer, Head of the Derivatives Division of Hansabank Markets, when talking about the trends on the US stock market.

“The economic results of the companies in the S&P 500 Index have decreased by 19% when compared to the previous year, but the majority of this is on account of the financial sector and car manufacturers. If we leave out the financial sector, then we see that corporate profits in the US have grown by 3% when compared to the previous year regardless of the difficult economic climate.

US economy, which has cooled down, is currently supported by export, such as the IT and healthcare sectors, which have benefited from good currency exchange rates regardless of the strengthening dollar and from the demand of emerging countries,” said Sommer and added that decreased commodity and oil prices should also have a positive impact on companies.

“Reversal of the trend that led to the weakening of the dollar is also a significant factor that supports the stock markets, because the dollar is strengthening against the euro and thereby adding extra rate of return to the investments made in the US, ” explained Sommer.

He added that the expectations based on history also show that impending presidential elections may increase the feeling of security in local consumers – the indicators of US stock markets have generally been better in the years of presidential elections that in other years. The risks pointed out by Sommer include accelerating inflation, the continued decrease of real estate prices and the decrease in the demand for US goods and services resulting from the cooling down of foreign markets.

The underlying asset of the deposit is the S&P 500 Index, which is spread between different sectors and contains 500 of the largest US companies. The share of financial institutions in the index has decreased considerably in recent years as a result of the fast price decrease of equities in the financial sector. The term of the deposit is 2 years.

The investment deposit allows investors to invest in financial markets without any risks as the principal deposit amount is 100 per cent guaranteed and profit from the possible increase of the index that is the underlying asset of the deposit is added to the principal investment. The new investment deposit offers the opportunity to benefit from the expected new rise of US economy.

Further information is available at: www.hansa.ee/investeerimishoius