What do we invest in?

Decreasing oil price levels below $ 37 - $ 38 would lead to stop of the extraction of shale oil, as companies are losing, because of higher costs for production. By keeping prices above those levels, these companies will continue production, which will increase demand and especially for shale oil. Furthermore, we constantly remain going short on oil. The USA has gone from a net importer to a net exporter of oil because of shale oil, therefore, prospects for oil prices are bad.

We have a positive outlook on the US Military sector. The new military competition between the United States and Russia will boost orders to the military industry - mostly ships and aircraft. The companies, for which we set up Long positions are: Lockheed Martin and Raynolds American.

Another sector to which we have been Bullish is Entertainment. Companies that we have chosen are: Walt Disney, Time Warner.

In terms of gold, we are feeling Bearish. The reason is the potential increase in interest rates by the Fed, which will lead to more expensive dollar rate. Raising the interest on the bonds will force investors to flee for the safest havens – therefore, it will have a negative effect on gold.

Instruments, on which we go short are mining companies’ ETFs (drilling industry for deep drilling). We are also Bearish on the major oil companies, such as Shevron, as the prospects for the sector are getting worse; low oil prices, increasing the costs of green fees and closing the wells, which increase costs and reduce profitability.

From the energy sector, we are Bullish only to companies, such as: Continental Resources, Hess Corp, Valero Energy, Hollyfrontier Corp, Pioneer Natural Resources, Tesoro Corp.

Our choice for shares in the technology sector is: Adobe, Facebook, Google, Microsoft, IBM and Amazon.

In the sector of Information Technology, we stop on the following companies: Twiter, Linkedin, Akamai Technologies, Micron Technologies, Apple.

In the industrial sector, we rely on: United Contiental, Locheed Martin.

We are looking forward to perspective for the US banking sector to improve, and during the next market correction we will enter taking Long position. Any increase in interest rates by the Fed will raise the profitability of the banking sector. The opposite is reality is facing the banking sector in Europe, where we are on Short position.

In the sector of Health Care, we chose going long for the following companies: Humana Inc, Eli Lilly & Co, Davita Healthcare, Cigna Corp, Anthem Inc, Allergan PLC, Amerisourcebergen Corp.

We are strongly Long-oriented towards VISA and Mastercard.

For large supermarket chains, we remain negative and are short-oriented towards the following companies: Walmart, Macy's, Target Stores. This is mainly derived from the development of online marketing, which is currently booming and is attracting new customers.

We are long-oriented towards any new IPO of the big companies, as the yield for the first six months in 2015 was 24%.

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