Why German equities are set to weather the storm

Clémence Dachicourt of Morningstar Investment Management

Clémence Dachicourt of Morningstar Investment Management

After a spectacular rally that lifted all boats, equity markets have corrected heavily over the past month.

In most cases, this was not enough to make valuations sufficiently attractive again, leaving investors with unexciting expected returns. Angela Merkel to step down as GermanChancellor in 2021 However, those who are willing to look beyond the broad regions can still uncover decent opportunities and we would consider Germany as one of them. Since early 2018, the country has underperformed global equities by over 18% as well as the European market by 10% and now trades below its fair value. Germany has been plagued by a number of factors: temporary issues such as car emissions scan...

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