2016 was not only the first full financial year for our company, but also an economically successful year in which we were able to make a significant contribution to the record tax revenues of the local authorities.
Our forecasts (DOW 20,000; DAX 12,000) were narrowly missed – but the fourth quarter of 2016 was still a good quarter for investors.
The upcoming elections in the Netherlands (mid-March), France, probably Italy in the fall and perhaps even Germany on September 24, 2017, harbour a certain risk of right-wing populism gaining further ground in the heart of Europe. High volatility is expected on the stock markets in the course of these elections, depending on the swing of the pendulum in the relevant polls.
We expect prices to trend upwards in the first half of 2017 – we believe a DAX record is possible – with high fluctuations. At the same time, we are still holding back liquidity in order to expand positions in the event of sharp setbacks, e.g. in the automotive industry.
The second quarter will be a record quarter for dividend payments, even though some traditionally strong DAX dividend stocks will pay little or no dividends this year (banks, utilities, Volkswagen).
We are confident that there will be no dramatic slumps in the second half of the year and expect a volatile sideways movement. It is worth taking a special look at our common currency. Upcoming interest rate hikes in the USA combined with new doubts about the stability of the euro (Greece, Italian banks, euro-sceptical right-wing populism) could be good for a devaluation potential of the euro of around 10 %.
We wish our business partners good luck with their investment decisions!
