1. The upcoming federal elections in Germany could derail Europe’s equity rally.

“There is a clear risk that the outcome isn’t as market friendly as is currently expected,” says Daniel Murray, deputy chief investment officer at EFG Asset Management. “If there’s anything we’ve learned with regard to election outcomes, it’s that they’ve become much less predictable.”

A survey by Bank of America last month found Germany had become the most preferred equity market in Europe as investors counted on a boost from fiscal stimulus. The widespread optimism means any idiosyncratic shock could result in a selloff.

The gains are already looking overheated, with the DAX in overbought territory as measured by its relative strength index.

2. Goldman raises gold target to $3,100 on central-bank appetite.

India and Chinese gold reserves are at all-time highs.

3. “Strong growth in electricity demand is heralding a new “Age of Electricity”, with demand set to soar through 2027.”

Global electricity consumption is expected to increase at the fastest pace in years over the 2025-2027 forecast period of this report, fuelled by growing industrial production, rising use of air conditioning, accelerating electrification, and the expansion of data centres worldwide.

Global electricity demand rose by 4.3% in 2024 and is forecast to continue to grow at close to 4% out to 2027.

Over the next three years, global electricity consumption is forecast to rise by an unprecedented 3 500 TWh.

This corresponds to adding more than the equivalent of a Japan to the world’s electricity consumption each year. Most of the additional demand for electricity through 2027 will come from emerging economies, which are expected to make up 85% of the growth.”

Source: International Energy Agency

4. Utilities are “full speed” on data centers!

Two of the US biggest utilities said that their data center customers are proceeding “full speed ahead” even after Chinese artificial intelligence company DeepSeek threw questions over the future for power-demand growth.

Here is the ETF Smart Grid Infrastructure.

5. European defense spending is going up.

6. And defense stocks/ETF are also heading north.

Not a subscriber yet?