German Dax.. I dont get it...

[zf trader]

A lot of the companies on the dax are large multinational corporations that conduct a great deal of business outside of Germany. German economics have only slightly greater effect on dax companies than they would on SP500 or FTSE 100 companies.

A good example of this is Deutsche Telecom. As T-Moblie they have a huge footprint in the USA.

 

[Trend Fader]

Quote from zf trader:

A lot of the companies on the dax are large multinational corporations that conduct a great deal of business outside of Germany. German economics have only slightly greater effect on dax companies than they would on SP500 or FTSE 100 companies.

A good example of this is Deutsche Telecom. As T-Moblie they have a huge footprint in the USA.

Makes sense.

Good post.

 

[jnhighland]

Markets are as unpredictable as women.

 

[just21]

Euro interest rate cut is coming, that is supporting the market and could lead to further gains.

 

[risktaker]

Yeah, right.

Only problem is, ''further gains'' nowadays only means more chop!

Some macro event needs to happen to blow the crap out of the markets one way or another. Interest rate gimmicks, unless it's a 2 point rise/drop just prolong this ugly chop.

Quote from just21:

Euro interest rate cut is coming, that is supporting the market and could lead to further gains.

 

[spyderman]

It is climbing the classic proverbial "wall of worry."

 

[Trader5287]

It's not just Germany. Money has been pouring into ex-US for well over a year. CAC40, some of the Scandinavian countries.

Pull up a few 2 or 5 year charts at random from Europe.

Best performing market in the world today? BEL-20. Up 1.46%.

Geo.

 

[Ikspec]

Quote from Trend Fader:

You have flat GDP growth with a negative GDP expected... unemployment highest since WW2... consumer spending is non existent.. investor confidence at 3 year lows.. Dax at 3 year highs.. lol.. just amazing how the dax plows along like a stellar champ.. atleast would make more sense if it was a lagging market... I just dont get it.. fundementals cant explain it??

Well weren't those conditions that were present right before the start of WW2 and its global ambitions? Maybe the DAX is expecting Germany to take over the world again.

 

[George SoreAss]

Why were internet stocks going up and up and up??? How could a company planning to sell used condoms be formed one year, float the next without ever selling anything and have a market cap of £20bn as was happening in the late 90s?

Not every up move has a fundamental reason, sometimes it's just technical.

 

[imc]

Quote from Trend Fader:

Germany unemployment rate is at 50 year highs... economy is not growing.. massive layoffs... I dont get how the Dax can be hitting multi year highs and outperforming the S&P. The only thing positive going on for the country right now is the weakining Euro... but even when Euro was strong Dax still held up..

Can someone please explain this outperformance.. i dont get it.. what am i missing?

Welcome to the Stock Market.