The results of the Bundestag elections kick off a potentially extended period of negotiations to form a new government. The parties differ on topics such as fiscal policy and climate change that will be critical to those discussions and the final shape of Germany’s government.
While investors can approach 2021 with optimism that an effective Covid-19 vaccine will be available, the path of the economic recovery remains unclear. A broader toolkit of investments is needed – not just the regions, sectors and strategies that have recently done well.
What does it mean to be a long-term investor? That was one of the main questions underpinning the discussions at our Investment Forum in Frankfurt. Topics included the importance of climate change and the future direction of Europe, as our investors and strategists shaped the convictions that inform our long-term investment strategies for clients.
As a companion piece to Neil Dwane’s global mid-year outlook, Mona Mahajan turns a spotlight on the US, where trade tensions and politics are weighing on markets. Given the increased uncertainty about the second half of the year, investors should stay active, defensive and diversified.
Changes in the euro zone’s economy have raised expectations that the central bank will be more precise at its next meeting about what’s causing the slowdown. We think the ECB will continue delaying rate hikes while also announcing a new liquidity program for banks.