What risks do investors face with Germany's upcoming federal election?

According to Daniel Murray of EFG Asset Management, there is a clear risk that the election outcome may not be as market-friendly as currently expected. This potential disconnect between market expectations and electoral reality poses significant challenges for investors who may be overly optimistic about the results. Murray further emphasizes that election outcomes have become much less predictable in recent years, suggesting investors should prepare for unexpected results similar to previous political surprises in Europe. With German stock indices at record levels, this unpredictability could lead to market volatility following the election.