Profitability is the key
In the past years, investors mainly paid attention to criteria such as sales growth. This is very likely to change. Profitable companies with strong market positions, which can pass on prices and maintain margins, will be ahead in the future, in our view.
The war in Ukraine, persistently high energy prices, strained global supply chains and rising inflation weighed on the stock markets in April. The high interest rate expectations also put pressure on the stock markets and, moreover, on the bond markets.
The Cards Are Being Reshuffled
Rising inflation rates, rising interest rates and ongoing geopolitical tensions are forcing investors to rethink. A paradigm shift is taking place in the valuation of shares: Factors such as profitability and market position are becoming more important than sales growth.
Unexpectedly strong resistance
In March, the stock markets initially continued their downward trend, but were then able to catch up significantly. This was the stock markets' reaction to, among other things, Ukraine's unexpectedly strong resistance to the Russian army. At the same time, the need for action by central banks grew in view of the further increase in inflation.
Ukraine war: Distortions on the agricultural market
Ukraine is one of the largest exporters of wheat, oilseeds and other agricultural products. The war could reduce the harvest volume for the 2022/23 season by 30 to 40%. Far-reaching supply shortages cannot be ruled out. Shares from the agricultural sector are moving into focus. An investment theme for DJE - Agrar & Ernährung (agriculture & food).
Follow the trend and do the opposite of what others are doing
Consistency is the key
Well Positioned: Our Company
The DJE Group is one of the leading independent wealth and asset managers in German-speaking Europe.