This paper evaluates the current state of the Germany economy and its capital market cross-sectionally and over time. We find a stable and promising economy in absolute and relative terms. During the European debt crisis, the German equity market proved to be comparably robust in displaying higher returns and lower volatility levels than most of its European competitors.

Given low correlation levels between the US and German equity markets, the addition of German equity to a US-centric portfolio provides significant diversification benefits. The German market has been and remains undervalued compared to the US market, further increasing its attractiveness for US investors.

Read: INVESTING IN GERMAN BLUE CHIPS – A US PERSPECTIVE