A surge in demand for German corporate securities is being observed on the OTC Markets platform, signaling a potential shift in US investor sentiment and a growing appetite for European stability amidst domestic political and technological uncertainties. According to Jason Paltrowitz, OTC Markets’ Vice President, average trading volumes in German equities on the platform have risen by a significant 81% since the start of 2024.
This initial uptick, Paltrowitz explained, was largely driven by US investors capitalizing on comparatively lower valuations in German and broader European markets. However, more recently, a discernible change in investor behavior has emerged. Beginning in early 2025, a considerable number of US investors are actively seeking to diversify their portfolios, revealing anxieties surrounding escalating political tensions within the United States and concerns about a potential correction in the frothy artificial intelligence sector.
The enthusiasm surrounding AI stocks has created a perceived bubble, prompting some investors to reassess their risk exposure and seek refuge in more established sectors. Paltrowitz highlighted the appeal of traditional industries like manufacturing and consumer goods, emphasizing the presence of “excellent companies” within Germany and Europe that offer a counter-balance to the volatility of AI-driven investments.
The OTC Markets platform provides German companies already listed on German exchanges, like Adidas, BASF, Bayer, DHL, Deutsche Telekom and Infineon – currently represented by shares and American Depositary Receipts (ADRs) – with a streamlined avenue to access a wider investor base in the US. This “Listing Light” option is particularly attractive to German corporations as it presents a substantially less burdensome regulatory and financial undertaking than a full secondary listing on prominent US exchanges like the NYSE or Nasdaq.
The trend raises questions about the perceived safety and stability of the US market and whether German companies are uniquely positioned to benefit from this outflow of capital. It also potentially underscores a growing recognition amongst US investors of the strengths and resilience of the German industrial base, especially in a period of geopolitical uncertainty and technological speculation. While the OTC Markets provide a convenient access point, the underlying shift in investor strategy signals a more significant reassessment of global investment risks and opportunities.