18. June 2020 | 09:12 CET
Daimler, SAP, Triumph Gold - the changing world offers opportunities
What is the next big trend or with what can you achieve a decent return in the next days, weeks, months or even years? These are the questions that investors are currently asking themselves because the world and the investment environment have changed dramatically since the outbreak of the Corona Pandemic. On the one hand, social and economic life around the globe came to a virtual standstill and, in contrast, the German leading index, for example, after a short and sharp correction, is now only around 10% below its all-time high of last February. Those who have so far missed the start of the recovery phase are now looking for opportunities that have attractive price potential in the second half of the year.
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ISIN: CA8968121043 , DE0007100000 , DE0007164600
Potential in the gold boom
In the context of the Corona Pandemic, central banks around the world have adopted measures to ensure the stability of the financial system. The money supply was drastically increased and thus the course was set for a higher inflation rate. If you want to avoid the risk of currency devaluation, gold is a safe haven. The private banker John Pierpont (J.P.) Morgan is said to have once said that gold is money and everything else is credit. This proven truth may well be the beginning of a new trend.
Each piece of gold is unique. This year gold production is expected to peak at around 118 million ounces. By 2029, production is expected to decline by up to 45%. The reserves of gold producers are also shrinking. In the period from 2012 to 2019 the reserves of the major producers were down 34% to 584 million ounces. Triumph Gold is exploring projects in the Canadian Yukon and already has the producer Newmont on board as a major shareholder. With further discoveries and a stable gold price, a takeover is a common exit strategy for shareholders.
Loser of political planning
The Daimler Group is currently in a dilemma. On the one hand, politicians have defined emission standards that limit the scope for action with regard to the product range and at the same time demand electromobility in which there is a widespread lack of charging and refueling facilities. The chicken/egg problem will be exacerbated by a lack of public understanding that electric mobility should be clean. As long as the source of the electricity is not cleaner than a combustion engine and the problem of disposal or recycling of batteries is not solved, sales are likely to decline and the lifetimes of combustion engines will be extended. The experiment to influence the climate will change Germany massively.
The German software company SAP is by far the most expensive company in the DAX. SAP's market value is currently around EUR 145 bn, well ahead of Linde with EUR 97 bn and Siemens with EUR 86 bn. Without SAP, many companies around the world can no longer function. The company has made itself simply irreplaceable with its software solutions. The latest project from SAP in cooperation with Deutsche Telekom is the Corona Warn App of the German government. SAP's stock combines vision, expertise and dividends.