News
Opportunities through special situations
Looking ahead to the current month, we remain cautious, even if a short-term recovery (due to market technical factors) is possible. The monetary situation can still be classified as negative. However, if you focus on special situations, you should be able to get through this phase well.
Weak September
September is historically often a weak month in the stock market, and so it also performed negatively this year compared to the previous month. Higher bond yields in the US and Europe as well as a weaker economic outlook in Europe and China weighed on the markets.
How the IRA affects the healthcare sector
Politics usually only have short-term effects on stock markets – so they say. But the healthcare and pharmaceutical sector is an exception to this golden rule. The diverse sector is often significantly impacted by political decisions.
Automotive industry: The calm before the storm
The automotive industry in Europe seems to have stabilised as supply chain problems and cost inflation due to the Covid-19 pandemic have eased. However, the shift towards electric vehicles is profoundly affecting the sector and presents challenges for traditional manufacturers.
Short-term market recovery possible
There are various reasons for a short-term market recovery in September. In the medium term, however, we remain cautious, as economic risks are increasing, not least in Europe. We see potential in Japan and in companies that can benefit from the US Inflation Reduction Act.
Are interest rates about to plateau or peak?
Investors on both sides of the big pond are speculating whether the central banks have now reached the end of their interest rates hikes - especially in the U.S. What does the inverted yield curve mean for investors? Dr. Ulrich Kaffarnik explains what the latest developments mean for investors.
Challenging second half of the year
Looking ahead to August, we remain cautious. After the good performance in many stock markets in the first six months of this year, the next months could be more challenging.
US economy grows strongly
As in the previous month, the international stock markets showed their friendly side in July. Above all, the unexpectedly strong growth of the US economy in the second quarter had a positive effect on the stock markets. In addition, many market participants expect that the central banks in Europe and the USA will not take any further interest rate steps after the interest rate hikes in July.
Key industry for decarbonisation
Commodities have fared better in the past. But since the beginning of 2022, it seems, the worm has been in the wind. Production, profits and revenues of mining companies are falling, only costs are rising. But the sector is consolidating and a bottom is in sight. Moreover, the current mine supply cannot meet demand for some metals. This applies first and foremost to the key metal of decarbonisation: copper.
Cloud Computing – renting instead of (self-)making
In retrospect, 2006 was a decisive year for online retailing: the industry giant Amazon opened up its IT infrastructure, which until then had been used exclusively by itself, to other retailers and companies as a service. These "Amazon Web Services" include a broad range of different technical solutions that can be booked and cancelled according to individual needs. „Cloud computing" developed from this. In the following analysis, investors will learn about the complexity behind it, the opportunities that arise from it and which companies currently dominate the market.
Liquidity becomes more precious
The bankruptcy of Silicon Valley Bank and the emergency takeover of the major Swiss bank Credit Suisse by its even larger rival UBS have unsettled the markets. While a broad banking crisis is unlikely, other consequences, such as for liquidity and credit, are foreseeable. DJE's banking analyst and fund manager Moritz Rehmann explains how DJE is dealing with the issue.
Light at the end of the tunnel?
With inflation easing, a recovery of German equitites of the residential real estate sector is possible. Certainly, the interest rate turnaround at the ECB will still take time, but the increase of key interest rates are beginning to take effect. The easing of energy costs is also having a supportive effect. In this environment a 30 percent correction of real estate prices anticipated by the market seems exaggerated, especially as the housing shortage continues to worsen. New construction should remain at a very low level in the coming years, while the influx of refugees from Ukraine is continuing at record levels.
The comeback of bonds
For a long time, the asset class of bonds enjoyed great popularity among professional and private investors due to its broad stability and not infrequently served as risk mitigation and diversification in portfolios. However, inflation and rising market interest rates triggered a broad sell-off in the bond market this year, abruptly ending a bull market that had lasted for three decades.
We look for structural winners in the niche
With the DJE - Mittelstand & Innovation, DJE bundles high-growth and innovative companies from Germany, Austria and Switzerland in one fund. Its concentrated portfolio includes many of the "hidden champions" from this region, which has recently been somewhat out of investors' focus, but whose strong Mittelstand companies are still worth a close look.
Between recession and structural growth drivers Summary
With a recession looming, a short-term downturn in the semiconductor industry is probable, but this is unlikely to have much impact on structural trends as these trends are long-term drivers. Various forces are currently affecting the semiconductor industry, whose products are indispensable in many parts of the global economy. This situation is complicated: An improvement in supply chain problems meets recession concerns, and global tensions, particularly between the U.S. and China, are creating uncertainty. What investors should know now.
Promising, but not a sure-fire winner
Online commerce experienced a huge boost from the Corona pandemic. With the return of more normality, this growth is likely to slow down. However, the structural trend remains intact. Platforms are benefiting in particular, because network effects are the economies of scale of analog mass production in the digital world. When it comes to payment systems, banks are losing out, and the importance of cash is dwindling in favour of digital wallets.
A widespread disease from an investor's perspective
Obesity is on the rise worldwide and literally a burden not only for those affected. It is also a burden on the healthcare and social systems of national economies. Several promising new drugs are currently in trials or have already been approved and could make expensive stomach reductions obsolete.
A question of (price) discipline
Global automotive production typically grows at a similar level as the global GDP - yet we have seen a decoupling of this long-term trend since 2019. However, the growth prospects of the global automotive sector have not changed structurally, they have rather come under pressure due to a combination of different circumstances.
Structural trends are intact
For a long time, technology stocks enjoyed a special environment: with extremely low interest rates, growth was easy to finance, growth took precedence over profitability, and Corona accelerated the digitalisation of entire sectors and areas of life. In this constellation, they were the darlings of investors. But since the beginning of 2022, that has changed.
The need for change
While oil prices have continued to rise in recent months, investment in new oil and gas projects have been stalled for some time. Investors are increasingly avoiding industries that produce fossil fuels and high CO2 emissions.