Go for Stocks with Solid Foundations and Resilience
"According to a stock market expert, these particular shares are now in need of fresh investment due to their current sold-out status."
The stock market's prolonged bull run has sent many investors into a frenzy, but Stefan Risse and his team at ACATIS have been cautious for months. However, now Risse believes the relative value of stocks compared to bonds has strengthened in the recent price drop. As a result, the team has spruced up their game, raising the equity allocation in their mixed fund, ACATIS Value Event.
In Risse's view, "the stability of stocks over bonds" has improved, and he's shifting gears towards investing more targetedly in selected companies. Unlike chasing pie-in-the-sky prices, Risse prefers grounded key figures and tried-and-true business models. "We're eyeing companies that are currently on sale – if the panic sell-off intensifies, they'll become even cheaper, and that's when we'll pounce," he states.
In today's increasingly protectionist market climate, Risse is keen on companies that can weather a potential trade war or geopolitical tensions with aplomb. Yet, it's not just about the price; the business model itself must prove resilient against future challenges, both economic and political.
Stefan Risse: Your Guide to Spotting Resilient Stocks
You've likely heard of the price-earnings (P/E) ratio when it comes to stock analysis. Risse, however, is a bit more selective. He looks beyond the classic P/E ratio and focuses on additional indicators such as the price-to-cash flow ratio.
According to Risse, this ratio is more precise, especially when evaluating large tech companies with substantial AI investments. The high AI expenses may negatively impact cash flow but do little to affect profit margins. Moreover, he regards book value, but only if it still possesses practical significance.
In Risse's words, "When you find stocks that are resilient, even in the face of economic and political challenges – and their prices are back to affordable levels – they're truly outstanding companies." He advises opting for quality over fancy market trends and substances over speculative hype.
What's Next for Stefan Risse and the Stock Market?
How exactly is Risse investing his hard-earned money and when the much-anticipated crash at the stock exchanges will occur – stay tuned to find out.
Furthermore, in Dr. Jens Ehrhardt's view: "What Investors Should Do with Stocks Now," read on to get some golden insights into exploiting the ongoing market situation for your portfolio's benefit.
Investors, following the advice of Stefan Risse, should be cautious amidst the stock market's euphoria yet take the opportunity to invest in resilient companies when their prices drop. Risse believes in evaluating stocks beyond the classic P/E ratio, focusing on the price-to-cash flow ratio and book value with practical significance. As Risse increases the equity allocation in ACATIS Value Event, he encourages investors to look beyond market trends and speculative hype, and instead opt for quality stocks that can weather potential trade wars and geopolitical tensions. In the future, Risse is likely to provide further insights on investing in the stock market, as well as his investment decisions.
