1. The global economy is in good shape. Can it still be improved?
The starting position is actually astonishingly good. In Europe, the economy is growing by 2%. Only two years ago, no one would have expected such a rate of growth. And the situation may improve further. The planned labour market reforms in France, for example, could contribute to this.
2. Are the recent debt ceiling discussions in the US a cause for concern for investors?
It looks like the problem will be postponed until December. If you look back in history, when it happened before, the stock markets saw some volatility but rebounded quickly. The big declines around debt ceiling occurred when rating agency Standard & Poor’s downgraded the credit rating of the USA. We do not anticipate that this time around.
3. Stock valuations, especially in the technology sector, are currently high. Doesn’t that call for a correction?
US technology stocks can be divided into two groups. The first is the established companies that generate a lot of cash. In their case I believe that the valuation is reasonable and not exaggerated. Investors should be cautious with the newer companies, on the other hand, as they’re still making losses and are more ambitiously valued.