As of from the 1^st to the 31^st of December, 2015 the assets value of the WellMax investment portfolio increased by 1.19%, it means that in last month the WellMax profitability amounted to 14.28% per annum.

In the picture above you can see the schedule of our monthly profitability.

As before, in December the base of WellMax return on assets (ROA) was the profit from top-quality securities – bonds, mainly. This owes to the preeminence of such securities in the portfolio that traditionally ensures a high stability of WellMax efficiency. At the same time the company`s activity in the segment of risky assets – shares, mainly, was the main reason for growth of WellMax ROA.

In particular, in last month we managed to earn a good profit from decrease of Chinese companies` asset value, which followed the expectations of a considerable slowdown in China economic growth and ongoing yuan devaluation. In our autumn reviews we talked about these occurrences in details.

The decrease of domestic demand in PRC was for us an absolutely predictable consequence of yuan devaluation and a considerable loss of savings of the Chinese population as a result of the stock-market crisis of mid-2015.In December the fall in domestic demand in China returned an unkind echo not only to the Asia-Pacific region but to the stock exchanges of Western Ukraine and America. Thus, Dow Jones Luxury, the index of luxury segment companies in New York stock exchange lost close upon 15% in December due to fall in demand for luxury goods in China, which has been one of the biggest consumers in this field.

However, as it became clear already in thefirst fortnight of January (due to the low business activity in many markets in the beginning of January, we decided to issue our review in the second half of the month in order to cover the events of the beginning of the year), the December fall turned out to be just a first sign. The year began with a sharp slump of markets in the USA that resulted in the worst beginning of the year for New York since records had started.

ItstandstoreasonthattheChinese factor also had a great impact on oil quotes which continued dropping in December together with shares of oil companies. However, without the “Chinese” reasons there were a lot of reasons for it. For example, lift of embargo to oil export from the USA, USD strengthening due to the increase in the key rate of the Federal Reserve System, decrease in production profiles of the main exporters, lack of agreement in actions of OPEC-members, an impending release of the Iranian oil to the markets, and decrease in consumption due to large-scale implementation of energy-saving technologies. It is important to state: we got rich from the oil market drop in December!

Still, what are we in for 2016? From all appearances, the speed of economic growth in China will continue to be inconvenient for the Chinese authorities. Thus, we are anticipating the continuation of yuan devaluation that can result in renewal of aggressive currency wars, especially among export-oriented developing economies. Consumer demand in developing markets, especially for imported goods from developed countries, will stay low, and it will give no support to Western markets. It is possible that in the nearest future we will witness a significant drop of the European markets which will follow America. All this together with problems of raw-material economies can lead to a considerable global decrease in prices for the assets, and now it seems to be not so unusual.

However, as you can see, we are able to earn both from assets falls, and assets growth. We are glad that WellMax gives our clients a possibility to get income while a lot of other investors lose!

In this review we didn`t write about factors of geopolitical tension, escalation of war conflicts, terrorist threats and an ongoing migration crisis in Europe, as well as other headline-making events from newspapers. In what way do these factors influence the present state and prospects of economy and markets? You can learn about all this and many other things at the monthly International Basic Seminars of Good Life Consulting.