- 8 Eastern European stock markets can outperform –
At the G20 Foreign Ministers’ Summit in New Delhi on 1-2 March, the opportunity to approach each other and jointly initiate peace talks in Ukraine was missed again. China’s peace initiative is obviously falling on deaf ears in the West. While the BRICS countries plead for a resumption of dialogue and diplomatic negotiations, the G7 obviously prefer to let the weapons speak and teach Putin a lesson. In the process, a stalemate and a war of attrition are now emerging in Ukraine. In the Battle of Bachmut alone, hundreds of people are now dying every day. Is this really necessary?
Investors should not miss the moment on the stock exchanges of Eastern Europe either. Eight stock exchanges from Eastern Europe are already among the 30 best-performing stock exchanges in the world. In addition, there are now new Pre IPO opportunities via the broker Zerich Securities and IPO opportunities via Freedom Broker.
Andreas Männicke also gives his assessments of the new opportunities in his stock market letter EAST STOCK TRENDS (www.eaststock.de) and in his new EastStockTV video, episode 207 at www.YouTube.com.
G 20 Summit Misses Opportunity for Peace Talks
At the G20 summit in India at the beginning of March, 20 foreign ministers met more or less harmoniously, but once again they missed the chance to push for peace talks in Ukraine and to pull together. It should be clear to all that the main players who can decide on peace are in London and Washington. However, the USA and Great Britain are obviously not ready for peace talks and would rather let the weapons speak. At the same time, the BRICS countries, i.e. Brazil, Russia, India and China, are pleading for peace talks and diplomatic negotiations. Unfortunately, China’s peace initiative is falling on deaf ears in the West. However, the peace plan was also not specific enough. As is well known, the devil is in the detail. Moreover, the US Secretary of State accused Blinken that China was supplying weapons to Russia, thus crossing a red line.
Lukashenko demands immediate peace negotiations: now or never!
President Lukashenko of Belarus also urged that now is the best time to approach each other and prepare for diplomatic negotiations. Later it could be too late and the Ukraine war could even escalate into a third world war, which basically nobody wants. It is well known from conflict research that there are always moments when even strong conflicts can be settled up to a certain point, but not afterwards. Then the conflict can only escalate to the detriment of both conflict parties.
But Scholz/Biden only want to continue supplying weapons
Even at the almost secret meeting with Scholz and Biden in the USA, the discussion was unfortunately mainly about which weapons could be provided and when, and not about the initiation of peace talks. The EU also missed the chance to put pressure on Joe Biden and Selinskyi to initiate diplomatic negotiations. Scholz only reminded Indian Prime Minister Modi that he should push harder to get Putin to withdraw and end the war. Modi thinks little of this advice. There are rumours that George Soros is planning to oust Modi because Modi is a thorn in the side of the US. India now continues to get more oil from Russia on very favourable terms than ever before, but so does China. So, unfortunately, the children’s theatre with deadly consequences for the people of Ukraine continues.
Stalemate in Ukraine is the perfect moment to negotiate, but….
There is now a stalemate in Ukraine, which would actually be the best moment to negotiate. It is a war of attrition where no one is making much progress. The city of Bachmut continues to be fiercely contested, with Ukraine holding the ground in the city centre, although the city is surrounded by Russians. It is doubtful whether the tanks from Germany will soon bring about a turnaround. In any case, Selinskyi is very convinced that he can put the Russians to flight with new weapons, as was recently done successfully in Kharkiv.
Calm before the storm on the world stock markets?
The world’s stock markets are still taking the possible dangers of escalation in the Ukraine war very calmly. Even the still very high inflation of 8.7 per cent in the euro area and possible further interest rate increases by the Fed and the ECB do not seem to bother them very much at the moment. The purchasing managers’ index in China has already risen again. China wants to grow at 5 per cent again this year. But what is happening in the USA and the euro area? Here, a rather weak economy is expected. The VIX index is lower than it has been for a long time, which is also a sign of a certain lack of concern. But is this the calm before the storm? Gold/silver remain depressed due to the risk of interest rate hikes, but have recovery potential, as do cryptocurrencies, which have already risen sharply, such as Bitcoin or Ethereum by over 30 percent this year.
New pre-IPO and IPO opportunities: seize the moment now!
If the stock markets continue to perform so well, many new companies will go public again this year, especially in the USA. Anyone interested in pre-IPOs and IPOs should contact the broker Zerich Securities or open an account on the Mind Money portal at the link under https://trade.mind-money.eu. Then they can already participate in the pre-IPO of the promising software company for the blockchain Ethereum called ConsenSys. However, Freedom Broker also provides information about the new opportunities with pre-IPOs and IPOs, and will also be giving presentations about this at Invest on 17/18 March. At Freedom Broker, investors also get 3 percent interest on free liquidity in a USD account and 2.5 percent on a Euro account. Those who want to know what will happen to Russian stocks now are also in good hands with Freedom Broker. It is easy to open an account at the link: https://freedom24.com/invite_from/2952896
And the winner is: Rheinmetall!
On Monday, the DAX achieved a plus of 11.3 percent since the beginning of the year and thus performed much better than the S&P index from the USA with a plus of only 6.54 percent. An index level of 15,653 index points also means a new 52-week high for the DAX. New to the DAX is now the defence company Rheinmetall, which can look forward to further defence orders. Rheinmetall rose by 3.29 per cent on Monday to a new all-time high of €257, while the price-earnings ratio (P/E) remains moderate at 15. Rheinmetall is certainly one of the beneficiaries of the war in Ukraine and the new “special fund” for military spending with a volume of €100 billion. The share price has already risen by over 150 per cent since the start of the war.
Eastern European stock exchanges can outperform again, but who was there?
However, 3 stock exchanges from Eastern Europe performed even better than the DAX, such as the PTX index for shares of the Prague Stock Exchange with a plus of 23.8 percent. The stock market indices from Croatia and Slovenia were also able to outperform the DAX with a plus of more than 13 percent each. 8 stock markets from Eastern Europe are again among the 30 best-performing stock markets in the world. Russian shares are still not tradable for foreigners due to the war and sanctions. A good alternative is offered by shares from Kazakhstan, which is also very rich in raw materials.
Inform first, then invest
There are also new opportunities in Eastern Europe in general, where there are always outperformance chances. Inform yourself now in detail about the background and the development of the Ukraine/Russia crisis but also about the future recovery potential of undervalued shares from Eastern Europe. There are also new opportunities in the Baltic States, Kazakhstan, Georgia and Ukraine.
Review: In 2018, 10 stock markets from Eastern Europe were among the best-performing stock markets in the world, all of which clearly outperformed the DAX and also the US stock market. The Moscow Stock Exchange was the clear outperformer among all world stock markets in 2019, with a gain of over 46 per cent in euro terms. However, the Bucharest Stock Exchange (Romania) also rose by over 32 per cent in 2019. The stock markets in South-Eastern Europe and also in the Baltic countries remained very stable on the plus side (Croatia +13 per cent). In 2020, 6 stock exchanges from Eastern Europe were among the 30 best performing stock markets in the world and last year even 11 stock exchanges from Eastern Europe. In 2021, shares in Kazakhstan rose by more than 80 per cent. Last year, 5 Eastern European stock exchanges, mainly from the Balkans, clearly outperformed the DAX, and this year there are already 8 Eastern European stock exchanges that have outperformed the DAX. The CTX index for shares from the Czech Republic has already risen by 23 percent this year. So even after the Ukraine war, it is still worthwhile to look beyond the horizon to Eastern Europe.
Order now a trial subscription (3 issues by e-mail for only 15 €) of the monthly stock letter EAST STOCK TRENDS (EST) with another Ukraine/Kazakhstan/Russia special and a dividend/bond special as well as with a lot of background information and new investment suggestions such as the “Stock of the Month” and lucrative certificates at www.eaststock.de, there under Stock Letter. The next EST will be published in March 2023.
TV/radio notes: The last radio interview was on 2 March 2023 and previously on 31 October on Börsen Radio Networks. The next radio interview is on 2 October 2023 Stock Exchange Radio Networks. Also watch the latest EastStockTV video on YouTube about the Ukraine war and the new outperformance opportunities of the Eastern European stock markets. Every fortnight Mr Männicke is also on YouTube at, “Finanzstammtisch” from Capital-Manager.com, most recently now again on 7.3.23 with the topic “G7 versus BRICS, where to invest?” You can download the interviews and videos at www.eaststock.de under the heading “Interviews” as well as the videos from EastStockTV. By the way: have you already subscribed to the EastStockTV YouTube channel?