Radio report: “Opt for shorter maturities on bonds and focus on more defensive stocks”

Börsenradio | Uwe Eilers (Frankfurter Vermögen) discusses rising bond yields, France’s budgetary situation and a more defensive equity allocation. Yields are rising sharply worldwide – for Mr Eilers, this is primarily a problem of confidence wherever politicians fail to take the right measures for the capital markets. France epitomises this: the country is now paying around 4.21 per cent on ten-year government bonds, which is more than Greece’s 4.02 per cent. Whilst Italy and Greece are reducing their debt and pushing through reforms, Mr Eilers sees France as a problem and, consequently, a new cause for concern in the eurozone. In Japan, too, yields have returned to three per cent for the first time since 1996; Japanese investors have already withdrawn their capital from the US and Europe – an outflow of funds that is placing additional strain on Western bond markets. The result: caution. Whilst equities remain in the portfolio, they are now significantly more defensively oriented, with a lower weighting in technology. Frankfurter Vermögen does not wish to jeopardise the returns it has achieved.

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The programme is in German.