Frankfurt stocks: DAX remains in front of the 14,000 mark without impulses – the lack of alternatives means there is no pressure to sell

Against the background of an infection process that is not calming down and the risk of even longer lockdowns in Europe, the German share index lacks the strength to break the 14,000 point mark again.

Against the background of an infection process that is not calming down and the risk of even longer lockdowns in Europe, the German share index lacks the strength to break the 14,000 point mark again.

In an overall market with relatively little momentum and events, however, individual stocks continue to provide the highlights and dynamism. Once again, companies from the hydrogen industry, electric car manufacturers and everything that has anything to do with it are in demand on the stock exchanges.

The equation on the stock market is still correct and that also explains why stock prices can stay at their high levels in these uncertain and difficult times: interest rates are low and the stock market, on the other hand, lures with dynamic price increases. The spiral is likely to continue until interest rates begin to rise, calling into question the self-sustaining rally of ever lower interest rates. Only when bond yields actually rise sustainably could this equation no longer work out on the stock market.

However, it seems highly unlikely that returns will actually increase by any significant amount. In the US, Joe Biden’s new presidency is expected to further boost the economy. And central banks will not consider tightening in the devastated post-Covid economic landscape either, as rising interest rates would hold back investments. This means that stocks remain attractive and, despite all the uncertainties, there is no reason to part with your positions for the moment.

DAX now trade via the test winner (financial test 11/2020), from € 0 on Smartbroker.de

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