Euro am Sonntag Special: Asset Allocation Traffic Light: Equity ETFs are currently the clear favorites | message
from the Euro on Sunday editorial team
The increased inflation expectations have evidently moved ETF investors to switch. The equity markets were the winners. With a moderate rise in inflation and interest rates, which does not lead to a market upheaval, the company’s sales and earnings ultimately rise, and with them dividends and, ultimately, share returns. “In principle, it can be assumed that most companies in the global stock indices will be able to compensate for the pressure on margins through higher purchase prices on the other hand through price increases and efficiency gains,” says Ferat ztrk, ETF expert at DWS.
Accordingly, share ETFs were on global indices the industrial and emerging markets, but also ETFs on European equity markets. The opposite is the case with government bond markets: the rise in uncertainty about future inflation rates is enough to make the risk premiums and thus the yields themselves rise. Accordingly, the prices of important government bond indices fell back in March, and ETF investors reacted in some cases with reallocations. In line with this, DWS has lowered the short-term outlook for government bonds from emerging countries from positive to neutral and the outlook for government bonds from neutral to negative.
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