Jort van der Horst

The German Bundestag’s decision to boost defense spending through debt issuance triggered a correction in European defense stocks. Investors are taking profits on high valuations as questions arise about whether they are still justifiable.

Emerging markets may finally be ready to retake the spotlight as investors are taking a fresh look at opportunities beyond Wall Street.

Due to increased concentration risk in equity markets that are ‘crammed’ into US (tech) stocks, asset managers are experiencing increased demand for rules-based ETFs. These trackers reduce that risk or exclude the market segment with the highest concentration risk.

At the edge of the abyss, the most beautiful flowers bloom. According to Sebastian Kahlfeld, senior fund manager at Deutsche Asset Management (DWS), Poland, Ukraine’s neighbouring country, offers a proxy opportunity to invest in Ukraine’s reconstruction.

Once the pinnacle of innovation, German car manufacturers now risk being overtaken by Chinese automakers, who are adopting the latest technologies at a much faster pace. The willingness to innovate and embrace disruption seems to come more easily in a new market unencumbered by a long-established history.

The “rigid” European business community will have to learn to embrace change to remain internationally competitive. Investment opportunities abound on the old continent, but investors must look beyond its scratched image.

China’s 10-year bond yield has recently dropped below 1.6 percent, a consequence of a weakening economy plagued by deflation. For the first time in 14 years, restrictive monetary policy has shifted towards a moderately expansionary stance. The goal: to support the economy and repair reputational damage.

The concentration risk in equity markets is growing as US megacap technology companies continue to attract capital. Diversification, often seen as the only “free lunch” in investing, risks coming at a cost.

When consensus dominates the market, unexpected surprises often lurk just around the corner. Could the U.S. economy prove weaker than anticipated, while Europe is stronger than expected? Is the threat of inflation a thing of the past, or could it re-emerge with greater intensity?

Heavy rainfall in Spain led to floods in October, causing over 10 billion euro in damages. This is yet another manifestation of the global water crisis, which poses an economic risk to investors. Risk management increasingly involves steering towards sustainability, primarily driven by economic incentives.