Consequently,
Should we fear backbone return:
Investors. In addition, long remotely remained from the Defense sector, have not resisted the budgetary endowments announced since the start of the year: plan “Rearmer Europe” at 800 billion euros, German infrastructure program of 500 million euros, agreement of NATO members to bring their defense budgets to 3.5 % by 2035, not to mention 1.5 % additional for infrastructure.
On the stock market, the values have gone. In addition, As of August 5. the title of the German manufacturer of combat equipment and armored vehicles Rheinmetall scored an increase of 188 % from the 1is January. His compatriot Hensoldt earns 172 %, the Italian Leonardo 85 %, the French Exociations and Thales, 121 %and 71 %. But would the break observed in recent weeks announce the end of the party?
ETFs, a double -edged weapon – Should we fear backbone return
The rush was massive: 8.7 billion euros spilled on the collective management funds labeled “Defense” during the first seven months of the year. according to the Data provider Morningstar. The ETF (Exchange Traded Funds. an index fund also called “trackers”) have grabbed the collection and now represent nearly 12 billion over a total outstanding of 12.9 billion euros in Europe (at the end of July).
However. the extent of the movement of these products translates sheep behavior, not to say speculative, and weakens the building by nourishing the shot on a small number of values. The should we fear backbone return Wisdomtree Europe Defense tracker, mastodon of 3 billion euros, concentrates 87 % of its investments in the first 10 European values. Consequently, any reflux of the ETFs could cause undifferentiated folds of the big names in the sector.
According to Yann Cordier. manager at Swiss Life Private Management, buyers remain on the lookout: “Since April, the slightest withdrawal has been used by investors. It is a methodical collection “he notes. However, the dynamics mark the step. “Paradoxically, the increase in defense values was interrupted from June 13, the day of Israel’s attack on Iran. It was for us a first precursor sign of a short -term break ”explains Thierry Bénistant. head of the Portzamparc investment committee (BNP Paribas group), who observes that “Other themes have taken over since the start of the summer, such as electrification and infrastructure. However, we keep a positive vision for the end of should we fear backbone return the year with regard to the major investment plans announced ”.
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