Good morning,

The total return year-to-date (YTD) of the S&P500 was 2.78 percent as at close of trading last Friday. At a first glance, it’s not a performance to boast about especially when the European markets such as the DAX is up 19.42 percent for the same period.

However, for a European investor, the performance of the S&P500 performance is much better than the 2.78 percent because he has to factor in the strength of the USD against the EUR.

YTD the USD strengthened by 7.83 percent against the EUR. This means that for a European investor, the return on the S&P500 is 10.83 percent which is already much more interesting, narrowing the gap between the US and Europe.

Regarding the EURUSD, I’m of the view that it hit resistance at $1.3147 and I expect the EUR to lose steam from these levels mainly due to the quantitative easing program taking place in Europe. I wouldn’t rush and convert USD to EUR at this stage.

On the contrary it might be interesting to looking into an instrument which is long USD and short EUR. For the experienced traders who would like to spice up things in their portfolio (short term) it would be interesting to consider ETFS 3X SHORT EUR LONG USD (Ticker: SEU3 LN EQUITY).

Going back to the S&P500, just because the Fed stopped quantitative easing does not mean there aren’t any stocks which could generate alpha. I am a firm believer that both the US market and US companies in general are on the right track.

Investors are concerned that the Fed will raise rates in the second half of 2015. On the contrary, I’m of the view that the Fed raising rates is a consequence of an economy which is gaining positive momentum and this should lead to strengthening of US stocks.

It is true that if yields increase the expected return on US equities would have to increase. However rates are at rock bottom and I don’t expect the start of a rate hike to be aggressive and create a selloff in US stocks.

There are stocks within the index which outperformed the market by far. The top performing stocks in the S&P500 YTD are as follows (keep in mind that the increase does not factor in the gain from USD exposure):

Netflix Inc – Up 65.50% YTD (Ticker: NFLX US EQUITY, Price $565.24)

Netflix Inc. is an Internet subscription service for watching tv shows and movies. Subscribers can instantly watch unlimited TV shows and movies streamed over the Internet to their TVs, computers and mobile devices and in the United States, subscribers can receive standard definition DVDs and Blu-ray Discs delivered to their homes.

Hospira Inc – Up 43.30% YTD (Ticker: HSP US EQUITY, Price $87.75)

Hospira, Inc. is a global pharmaceutical and medication delivery company that develops, manufactures and markets products. The Company's portfolio includes generic acute-care and oncology injectables, as well as integrated infusion therapy and medication management products. Hospira products are used by hospitals, clinics, home healthcare providers and long term care facilities.

Amazon.Com Inc – Up 37.60% YTD (Ticker: AMZN US EQUITY, Price $427)

Amazon.com, Inc. is an online retailer that offers a wide range of products. The Company's products include books, music, videotapes, computers, electronics, home and garden, and numerous other products. Amazon offers personalized shopping services, Web-based credit card payment, and direct shipping to customers.

Newmont Mining Corp – Up 36.60% YTD (Ticker: NEM US Equity, Price $25.82)

Newmont Mining Corporation acquires, explores, and develops mineral properties. The Company produces gold from operations in the United States, Australia, Peru, Indonesia, Ghana, Canada, New Zealand and Mexico. Newmont also mines and processes copper in Indonesia.

Martin Marietta Materials – Up 36.50% YTD (Ticker MLM US EQUITY, Price $150.58)

Martin Marietta Materials, Inc. produces aggregates for the construction industry, including highways, infrastructure, commercial, and residential. The Company also manufactures and markets magnesia-based products, including heat-resistant refractory products for the steel industry, chemical products for industrial and environmental uses, and dolomitic lime.

Good day and happy trading!

Kristian Camenzuli