Allianz Research

Allianz Global Wealth Report 2024:
Surprising relief

Germany’s Easter package: Great green intentions

The starting shot for Germany’s green transformation, the Easter package announced last month calls for a near tripling of electricity generation from renewables by 2030. 

France: Turn the music off to hear the bells tolling

After an election campaign dominated by the topics of dwindling purchasing power and surging energy prices, it is now time for an economic reality check in France. The first 100 days of Macron’s second term need to establish a roadmap to tackle three issues in urgent need of reforms.  

Forget earnings yield, embrace “expected” capital gains?

Movements in interest rates alone cannot explain fluctuations in the earnings yield. We find that two variables – the long-term risk-free interest rate and, more surprisingly, the “expected” rate of capital gains (proxied by a weighted average of past equity returns) – explain the cyclically adjusted earnings yield of U.S. equities (S&P 500), which has dropped to a record low.