THE LONGEST EQUITY RALLY OF ALL TIMES










 Once again the DAX is sadly only driven by the US markets and again its overall performance compared to the US markets is more than lousy!! No volume – no performance – this is the outcome of the German leading stock index. Indeed a shame.

Ever since 2000 the DAX price index is down from 6266 points to 5719, while the Dow Jones came from 11600 and is now trading on 25814 points. Indeed hard to believe the only reason why the well known performance DAX (including reinvested dividends ever since June 1988, its start) are dividends. And knowing that German stocks are quite cheap compared to US ones, doesn´t make them more attractive to German investors. Again they stay off the lines and prefer to lose their money while leaving it in money market funds or just in cash. And just to mention the overall amount invested in cash and money market papers in Germany rose in spring this year up to 2,4 trillion Euro. And his amount is already used by the German government as collateral to guarantee the survival of Italian Banks. And some of them are really in terrible shape. So ultimately German investors will lose it all in the case Italian Banks will fail and there are some that could really go bust. So German investors fear the risk and stay off equity markets but will finally lose it all because of no or the wrong investment. And if they don´t lose it there, they will lose it due to the inflation. Just to mention prices ever since 2002, the start of the Euro as a payment tool, increased only in Germany by more than 110%, so the loss in buying power is more than 55% and this means the yearly inflation ever since then was 5% and not what is officially mentioned, below 1%.  Wow, what an outlook.

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