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FERI expects demand for alternative investments such as private markets (private equity, infrastructure, real estate) and hedge fund investments to continue rising strongly in the coming years. FERI currently manages alternative investments worth around 13 billion euros, making it one of the largest providers in Germany.

For more than 20 years, we have been offering our clients individually tailored risk management solutions. Market risks are actively managed according to risk and return parameters jointly defined in advance.  

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Sustainability is not only a socio-political imperative. For FERI, it also includes a clear commitment to shared social responsibility as a financial services provider. This is why FERI places the sustainable development goals (SDGs) defined by the United Nations General Assembly (UN) at the forefront of sustainability considerations in all its investment solutions and advisory services. 

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The FERI family office is the strategy advisor for your assets. We offer services ranging from strategic asset planning, implementation consulting and results monitoring and controls, through risk management and asset protection strategies to sustainability consulting. 

Sustainability is not only a socio-political imperative. For FERI, it also includes a clear commitment to shared social responsibility as a financial services provider. This is why FERI places the sustainable development goals (SDGs) defined by the United Nations General Assembly (UN) at the forefront of sustainability considerations in all its investment solutions and advisory services. 

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Markets Update October 2021 - Markets play the stagflation scenario

Bad Homburg, 10/18/2021
by Dr. Eduard Baitinger, FERI
  • Global economy with subdued growth
  • High inflation rates as an after-effect of supply bottlenecks
  • Significant recovery in prospect after the end of the pandemic

Due to global supply bottlenecks and rising commodity prices, the industrialized countries are in many cases recording the highest rates of price increases in years. High producer prices also point to noticeable background inflation, which could further increase the pressure on already rising consumer prices. At the same time, the growth momentum of the global economy has slowed and could come to a complete halt if disruptions in global supply chains continue. In a worst-case scenario, this could result in a stagflation scenario characterized by declining corporate profits and - in response to higher inflation rates - rising interest rates. In this case, there would be negative consequences for both equity and bond markets. Only a few market segments such as energy stocks, financials and commodities would then be available for portfolio hedging.

The fragility of recent weeks shows that the markets have in part begun to price in the stagflation scenario. However, since stagflation has played virtually no role in the recent past, market participants lack the experience to react appropriately to this development. This increases the risk of fear-driven reactions and thus abrupt corrections in the near future. In addition, the market breadth on the global stock exchanges has decreased. In the event of increasing selling pressure, the equity markets would therefore have little resistance.

Do not write off year-end rally yet

Despite the tense market situation, there are still good prospects for a year-end rally on the stock markets. The current inflationary pressure and weak growth are to a large extent the after-effects of the delta virus variant that has been rampant since the summer. New cases of corona in China, for example, have led to port closures in recent months, which have placed a considerable burden on global supply chains and industrial production. Consumption also suffered noticeably from the delta virus variant. Since late summer, however, the global Covid 19 situation has eased noticeably. This improves the prospects for the resumption of largely smooth trade in goods and increased industrial production before the end of the year. If economic growth and consumption rise in the months to come, a conciliatory end to the year on the markets is quite possible.


About Dr. Eduard Baitinger

Dr. Eduard Baitinger has been Head of Asset Allocation in the FERI Group since 2015. He is responsible for quantitative asset allocation at FERI Trust, where he also manages and coordinates numerous research projects. In close coordination with the FERI Board of Directors and Chief Investment Officer, Dr. Heinz-Werner Rapp, he also represents the investment strategy of the FERI Group and its communication to clients and customers of FERI.

Before joining FERI, he was a research assistant at the University of Bremen and financial analyst for an asset manager. In 2010 he completed his studies at the University of Bremen, accompanied by a stay abroad in New York, as a graduate economist. In 2014, Eduard Baitinger received his doctorate with distinction on new approaches to quantitative asset management. Dr. Baitinger publishes regularly in academic journals and acts as academic reviewer.


About FERI

Founded in 1987 and headquartered in Bad Homburg, Germany, the FERI Group has developed into one of the leading investment houses in the German-speaking area. FERI offers tailor-made solutions for institutional investors, family assets and trusts in the following areas:  

The FERI Cognitive Finance Institute was formed in 2016. It is the strategic research centre and creative think tank of the FERI Group. The Institute focuses on innovative analyses and the development of methods for long-term oriented economic and capital market research. 

FERI and MLP currently manage assets of EUR 51.4 billion, including EUR 13 billion in alternative investments. The FERI Group is headquartered in Bad Homburg and has locations in Dusseldorf, Hamburg, Luxembourg, Munich, Vienna and Zurich.



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Dr. Eduard Baitinger
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presse@feri.de

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Head of Press & Communications

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F +49 (0) 6172 916-1192
presse@feri.de

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Rathausplatz 8-10
D-61348 Bad Homburg

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