A new fiscal package was announced in Germany, consisting of defence spending, a EUR 500bn infrastructure fund, and an increase in the allowable structural deficit. With this new fiscal stimulus, we take a closer look at what this means for investors and maintain our positive outlook on German equities and bonds due to attractive valuations, an accommodative monetary policy, and strong projected earnings growth. *Attractive valuations, accommodative monetary policy, and strong projected earnings growth support a bullish outlook on German equities. We favor the MDAX Index – MDAX is more exposed to domestic demand and has a heavier weight in industrials and materials, making it a better bet for benefitting from the fiscal stimulus.”
Morten W. Langer
