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The current situation on the international capital markets 04/2017

 

Transcription of the Video:

Ladies and Gentlemen, I would like to give you an up-to-date picture of how we assess the market situation on the international capital markets. First of all, I’d like to point out that the global economic environment is very positive. Only this week, the International Monetary Fund has raised its expectation for global growth to at least 3.5 percent of gross domestic product this year. What should be emphasized in particular is the fact that for the first time in several decades, we are experiencing a globally synchronous recovery, i.e. substantial economic growth is taking place in the United States, as well as in Europe, Japan and the Emerging Markets. Europe in particular is benefiting disproportionally from the macroeconomic environment because especially export driven economies such as Germany are a key engine for growth. An aspect that is particularly attractive for the corporate sector are the current developments in profits. Europe stands out, as the profits of European equities are likely to rise disproportionately strongly this year compared to American or Japanese stocks or those from the emerging markets. What should be emphasized is especially the current valuation level. Equity valuations are clearly at fair levels and particularly attractive compared to alternative investment forms. Dividend yields are also highly appealing. The valuation divergence between Europe and the United States should be particularly highlighted. It is at its highest level since several decades. How should investors act to this environment? On the one hand, it seems that the equities remain a highly attractive portfolio component. We also expect not only a continuation of the flows and rotation into equities but also believe that many US investors will increase their European exposures. Thus, the future of the stock markets looks bright. Thank you for your attention.