How we create Zeitgeists

Every month, the Werthstein Institute reviews all current zeitgeists and discusses the newest trends in business, technology and politics. From there, we can identify potential new Zeitgeists, and discuss the overall state of the world’s capital markets.

We then prepare potential new Zeitgeists for discussion in the next Werthstein Institute panel discussion. Discover how the Werthstein Institute Fellows view current market developments, what they expect for the future and how they judge the Zeitgeists that are presented.

Zeitgeists are not merely descriptions of growth trends. They also entail one or more funds or a collection of individual stocks you can actually invest in, to take advantage of that trend.

These investment instruments are carefully vetted and selected, based on a range of quality criteria by our portfolio managers. They include a stock’s volatility, market capitalisation and liquidity. We aim to exclude penny stocks and steer clear of overvalued stocks. Where we use funds, amongst other criteria like a fund’s investment volume, we pay special attention to the so-called Total Expense Ratio (TER), which quantifies the costs an investment fund charges against its investors’ assets, thereby reducing their yields.

A Werthstein portfolio never contains more than 10% of its portfolio value in a single Zeitgeist at the time of investment.

Team of experts

We keep track of your investments and help you to decide not only what to buy, but also when to sell. Werthstein Zeitgeists are professional investment ideas. Ideas that help you build a professional, balanced portfolio from the Zeitgeists you believe in. Designed with precision up to the level of risk with which you feel comfortable.

Every month the professionals at the Werthstein Institute determine the current Zeitgeist, in order to better answer your financial questions. How is the world changing? What does this mean for my portfolio? What should I invest in? How much? And for how long?

We carefully select those investments which are set to benefit from a Zeitgeist. To that end we have designed a process which combines a detailed quantitative analysis and worldwide analyst expectations. Every month our professional team reviews every Zeitgeist, and monitors the markets. it’s simple: we keep you informed; you tell us how you would like to invest; and we stick to your wishes.

Easy to use

Werthstein was built for your smartphone. That way you have everything you need, when you need it. Werthstein combines visionary views on investment with professional portfolio management. Best of all it’s easy to use. Long-term Zeitgeists and current analysis are presented in crisp, clear videos and text. Once you are ready to decide, you can invest with just one click. We offer a flat monthly subscription fee independent of your investment amount. Our partner bank charges no fees for transactions, only a low custody fee. We make no money on the financial products you invest in – our only incentive is to satisfy your investment needs.

Open your account online and start building your portfolio today. It only takes ten minutes.

How you invest in Werthstein

Most Werthstein portfolios are likely to be invested partly in a number of Zeitgeists chosen by the individual investor and partly in what we call the base portfolio, which is a broad, highly diversified holding of global equities and Euro-denominated bonds.

You can choose a selection of Zeitgeists when you first join Werthstein. Or you can defer those selections until later, and hold your funds initially in the base portfolio. When you are ready to choose, we will swap a part of your base portfolio to accommodate your zeitgeists (remember, there are no additional transaction fees). You are free to add or remove Zeitgeists at any time, although, the Werthstein Institute will tell you when they think new zeitgeists are attractive and when existing Zeitgeists should be sold.

Whenever you choose a zeitgeist, we will provide you with a calculation of an optimal amount specific to your portfolio. You can confirm this amount, or specify another amount to allocate to this Zeitgeist.

Occasionally, we at the Werthstein Institute may also recommend that you hold on to some cash when we believe there is a high risk of an imminent downside in the financial markets.

Zeitgeists

Browse our currently available Zeitgeists and decide which ones you would like to add to your portfolio. You can do this by clicking on the Zeitgeists image. To read more about a Zeitgeist, click on its title.

Emerging Market Bonds

Better than no interest

Bonds from emerging countries like Brazil, Russia, Mexico and elsewhere are a major investment theme, a Zeitgeist. They offer quite an attractive yield, often 5, 6 percent or more, which seems reasonable, relative to their risk, at a time when interest rates on bank accounts are zero or very low.

What type of risk is there, alongside that kind of interest? There would not be direct currency risk, since this Zeitgeist is focussed on bonds denominated in (or hedged into) euros, not in the local currency of the issuing country. But there is credit risk. Argentina, for example, defaulted on its bonds less than ten years ago, paying back only a fraction of their value, and has only just settled a complex lawsuit, while Venezuela looks set to default soon. And even if a country does not default, the price of its bonds can fall quite a long way when investors get scared. That happened with Russia, for example, a couple of years ago, even though the prices later recovered most of their losses.

Robotics

Brains without hearts

Robotics and automation are one of the fastest growing parts of the world economy. Since the start of this decade the technology has advanced, allowing robots to move from being a specialised tool with limited applications, to become mainstream in the automotive sector.

Batteries

The Renaissance

“The factory is the machine that builds the machine,” says Elon Musk. The CEO of Tesla Motors is talking about his new Gigafactory, a vast production plant now taking shape in the Nevada desert. Tesla has long imported lithium-ion batteries from Asia, but to meet its target of producing 500,000 cars a year, it needs to build them nearer home. “Tesla alone will require today’s entire worldwide production of lithium-ion batteries,” the company says about its goals. The Greek word “giga-“, which means “billion”, has a number of Tesla interpretations, including the Gigafactory’s planned annual battery production capacity of 35 gigawatt-hours.

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