28th April 2017
Daniel Pfund, Senior Financial Analyst, Fund Manager
After the first round of the French presidential elections, investors will certainly again invest in the Eurozone, especially in France. The risk of a victory of extreme right is now slight. The risk of France leaving the Euro is now also behind us; the Euro is therefore saved and should strengthen compared to other currencies. In Switzerland, the SNB will also be relieved. On one side it does not any longer need to defend the Swiss Franc as safe haven and on the other side it already holds huge amounts of Euros, which will now appreciate.
Looking at the stock markets, the valuation of European equity has always been lower compared to the US. We believe that with the disappearance of the political risk, American investors should again invest in the Eurozone. In 2016 about USD 100 billion were taken out of European equities. This trend could now reverse.