"Averting the fad in this widely-preferred asset is suggested, as per the advice of a notable German stock market expert who is currently allocating investments towards stocks instead."
Professor Thomas Mayer, a renowned economist and former chief economist of a German bank, has shared his investment insights in a recent interview on BÖRSE ONLINE. The esteemed professor, who currently invests heavily in American stocks, warns that the stock market may not continue to be as euphoric in the next year as it was in 2024.
In the interview, Professor Mayer expresses a preference for short maturities for his investments and avoids investing in the stock market for a longer period. He also finds Bitcoin and gold as an interesting mix-in for investments, but does not hedge currency risk, maintaining dollar exposure in his investments.
One of the key concerns Professor Mayer raised is the expected increase in public debt under President Trump. He believes that inflation has already negatively impacted bonds, and he perceives the bond market as being in a bubble. Consequently, he suggests avoiding government bonds as a long-term investment due to the potential influx of these securities on the market.
Moreover, Professor Mayer predicts that deficits will grow larger under President Trump due to tax cuts without spending reductions. In Germany, he foresees a potential weakening of the debt brake with a new government, which could lead to increased debt levels.
The interview also discusses why 2025 poses a nightmare scenario for Germany, with a grand coalition in the new elections bringing little for the country. Professor Mayer suggests maintaining a US exposure in investments, as he expects the trend of overweighting American stocks to continue.
Interestingly, stock market expert Robert Halver predicts an unimaginable event will happen to stocks in the near future, although this prediction is not directly attributed to Professor Mayer.
For those seeking more detailed information about Professor Mayer's Bitcoin and gold investments, as well as his views on these assets as mix-ins for stocks, further research is recommended. However, financial experts generally view gold as a hedge against inflation and currency risk, while Bitcoin is considered a potentially volatile growth enhancer or alternative investment, usually recommended in small allocations.
In summary, Professor Thomas Mayer's investment advice emphasises caution in the stock market, a preference for short-term investments, and an interest in Bitcoin and gold as diversifiers. He also warns of potential issues with public debt and the bond market, particularly in the context of the US and Germany.
In the interview, Professor Mayer emphasizes his preference for short maturities in his investments, which includes avoiding longer-term investment in the stock market. Additionally, he views Bitcoin and gold as an intriguing addition to his investment portfolio, although he does not factor in currency risk hedging, opting to maintain a dollar-heavy exposure.
