Dusseldorf The German inflation rate is currently 7.3 percent – the highest value for around 40 years. The Russian war of aggression in Ukraine, the ongoing supply bottlenecks and high energy costs are some of the factors that are reducing the purchasing power of many investors on the markets.
However, one industry seems to be making steady gains: the consumer goods industry. This is not surprising, according to stock analyst Ulf Sommer: “In times of crisis, many rely on well-established products such as Coca-Cola. Everyone knows the brand and has something to associate with it.”
In times of crisis, investors rely on Coca-Cola, LVMH and Co.
Awareness suggests security to customers. According to Sommer, this is a buying argument for many investors in times of crisis. After all, it is precisely these consumer goods products that manage to push through the increased prices with the end consumer in times of inflation and rising raw material prices. “Coca-Cola has existed since I was a child. Hardly anything has changed in terms of appearance and taste since then,” says Sommer.
It’s the supposedly crisis-proof stocks that investors keep driving prices up. Sommer personally finds that stocks like those of luxury goods manufacturer LVMH are often overpriced. “Calculated down, investors pay 23 times the annual net profit for each share,” he complains. In the interview, the stock analyst presents five stocks from the consumer sector whose profits and profit prospects will probably continue to rise.
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The end of the real estate bubble
Also: According to the Federal Statistical Office, the prices for German residential real estate rose sharply at the end of 2021. An extensive study by the Hamburg Institute for World Economics (HWWI) for Postbank’s annual housing atlas now also suggests that real estate prices will tend to continue to rise – especially in large cities and their surrounding areas, explains Handelsblatt financial editor Kerstin Leitel.
However, Leitel points out that in the long term the value development on the real estate market will change due to the demographic and economic developments in the respective region and explains where the investment could be worthwhile.
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