2023-12-29 12:50:26
The year 2023 was characterized by a significant price upswing on the European stock markets – despite all the negative factors. In contrast, there were increases in yields on the euro bond markets until October 2023, while from October onwards – particularly on long-term bonds – there were significantly falling yields. Therefore, with a view to 2024, it should not be surprising if, due to this anticipation effect, there is little room for maneuver for long-term bonds – with a decline in yields on 10-year federal bonds from 3.0 percent to 1.9 percent most recently – and it should be difficult to do so to achieve better performance than the “coupon” in this rally.
In contrast, in 2024, against the backdrop of lower inflation expectations, the focus should be on the discussion about key interest rate cuts by the ECB with the corresponding effects on the short end of the yield curve. This means that stocks will receive a tailwind from this expected monetary policy in the new year, so that a stock dividend strategy once again has a good chance of an attractive, positive overall return. For this strategy, a basket of Euro Stoxx 50 stocks with a combination of attractive (gross) dividend yields and an interesting overall technical situation can be put together. The selection process, which has already been used in previous years, this time delivers an equally weighted basket of stocks consisting of Allianz (hedging stop: 190 euros), BASF (35 euros), Enel (5.30 euros), ING Groep (11 euros) and Sanofi (70 euros).
#conservative #strategy