www.bloomberg.com
German equities have outperformed broader European indexes in recent years, largely driven by major large-cap companies. However, this growth left mid-sized firms, known as the “Mittelstand,” behind. These SMEs are vital to the German economy but struggled with weak demand, high energy costs, and labor shortages. Recently, this underperformance has shifted. Valuations for mid-caps have become more attractive, and signs of economic stabilization are emerging. Consequently, investors are returning to these stocks, anticipating a rebound in the smaller company segment as economic conditions improve.
Read More
