The leading German index is reaching record levels, but many professional investors are still cautious.
(Photo: Reuters)
Frankfurt An unusual contradiction between mood and situation is currently shaping the financial markets. The stock exchanges in the USA and Europe are in robust condition, the Dax reaches record highs.
Nevertheless, the mood of professional investors after the announcement of further interest rate hikes by the US Federal Reserve and the European Central Bank (ECB) is far from euphoric. Many investors are currently pursuing a cautious portfolio strategy: they remain invested in stocks and bonds in order to take advantage of opportunities, but hedge against risks with liquidity.
“The positive development on the markets so far is no reason to become euphoric,” says Christoph Schmidt, head of the total return team at the fund house DWS. The full braking effect of the previous interest rate hikes in the USA and the euro zone has not yet unfolded, which is why the risk of an economic slowdown is possibly underestimated.
Asset manager Jens Ehrhardt from DJE Kapital thinks the same way. His strategy team has positioned itself “cautiously” for the coming months.
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