Baring Asset Management has said that it expects Germany's markets to continue to outperform its European rivals this year.
Experts at the firm say that the country led the continent's markets at the start of 2005 and has continued to do so since, praising it for a host of companies that are global leaders.
Gianluca Giardina, fund manger of the Baring German growth trust commented: "The turnaround of the German economy is now accepted among investors.
"Continuing business restructuring and improved performance coupled with the prospect of a boost to the economy from the World Cup will lure investors back to the region, thus the out performance of German Equities against other European markets should continue."
Germany has suffered economically in recent years, even being criticized by the European Central Bank for its performance, but the country is said to be returning to its old, strong performance.
Mr. Giardina tipped German small and mid cap markets to offer the best long-term performance, adding that the country had many medium sized companies that were world leaders for niche products.
Thanks to corporate restructuring and cheap valuations, Barings said that Germany now offered an "excellent opportunity" to invest in an asset class that was still trading on low share multiples, while offering higher earnings growth than other markets.