EWG: Running Out Of Fuel

EWG has delivered a stellar 33% YTD return, driven by AI optimism, fiscal spending, and narrowing valuation gaps with the US, but faces an expensive valuation. Germany's economy is challenged by trade uncertainty, sluggish growth forecasts, and high export dependence, especially amid US-EU tariff tensions. Supportive ECB policy, fiscal stimulus, and major corporate investment initiatives offer medium-term growth potential, but near-term risks remain elevated.