Why Germany remains the powerhouse of Europe

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Why Germany remains the powerhouse of Europe

In the run-up to the UK's Brexit referendum vote, it was clear the outcome could go either way, thereby affecting the prospects of individual companies differently within the German equity market. The UK-German trade corridor is well established and very valuable to both economies

Now we know the result, we expect to see market volatility persist over the short term. However, we continue to have confidence in the medium to longer-term investment case for Germany. Overall, the trust's exposure to the UK economy, which was not high to begin with, has now been reduced to insignificant levels. With around 30% exposure to the world outside of Europe, the downside from any weakness in the European economy is limited. In particular, when considering this would coincide with a weaker euro to US dollar rate, which would likely give a boost to many of the exporters' earn...

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