Portfolio 2
Make European Industry Great Again
The speech by US Vice President J.D. Vance on February 14, 2025 at the Munich Security Conference provided an additional boost to investments in a MEGA (Make-Europe-Great-Again) quality portfolio of stocks in the defense, industry, technology and mechanical engineering sectors. Since then, it has been clear that Europe must build up its own defense capabilities in order to be less dependent on the US in this area. This requires massive investment in European industry and infrastructure. The German Special Fund is helping to finance these increasing public investments in the areas of defense and industrial infrastructure to an amount of 500 billion euros.
Successful investing in a European MEGA-40 quality portfolio of equities in the defense, industry, technology and mechanical engineering sectors has not only significantly outperformed the S&P500 in 2025, but has also far outperformed the EURO-converted returns of an S&P500 portfolio, especially due to the pronounced weakness of the dollar. In 2025, European residents benefited particularly from investing their money in European companies, thus reducing their dependence on the US capital market and promoting the development of the European economy in the areas of defence, industry, technology and mechanical engineering.
Investing in a European MEGA-40 quality portfolio of equities in the defense, industrial, technology, and engineering sectors will help finance the enormous future investments in these sectors that are necessary to build European capacities and capabilities and reduce international dependence on dominant suppliers in these areas. It also helped mitigate the volatility and decline in global equity markets following the U.S. administration's tariff announcement on April 2, 2025.
The adoption of the German Special Fund for Defence and Infrastructure amounting to 500 billion euros on 4 April 2025 provided additional impetus. While broad American stock indices such as the S&P500, the Dow Jones Industrial Average, the NASDAC Composite are doing well this year after a rocky start, the global stock index MSCI World is still facing losses this year. The MEGA portfolio so far has performed substantially better by comparison.
