Development of DAX Blue Chips
The current development in the German stock market shows a remarkable dynamism: After a strong price performance of the DAX Blue Chips in 2023 and at the beginning of 2025 – with an increase of the DAX (DE40) by over 20% since the beginning of the year – there are increasing indications of a possible weakness phase for the large values. At the same time, small and mid caps are increasingly coming into the focus of investors.
- Strong performance so far: The DAX has made a rapid comeback after a setback in April and reached new all-time highs. Germany is currently seen as a bastion of stability and security, especially attracting foreign investors.
- Relative weakness compared to US Blue Chips: While US Blue Chips have been considered outperformers in recent years, they are now showing relative weakness. In return, the DAX benefits from this shift but continues to face economic stagnation.
- Recent price declines: On June 6, 2025, the DE40 recorded a slight decline to about 24,304 points (–0.08%), indicating some consolidation after the strong increase.
Reasons for Weakening Blue Chips
- Valuation concerns: After the sharp price rise, many Blue Chips are expensive, which makes further gains harder.
- Economic uncertainties: The German economy continues to suffer from stagnant growth rates, although there are hopes for improvement.
- Sectoral rotation: There are indications that investors are increasingly shifting their capital into small and mid caps, as these often can act more flexibly and offer more attractive valuations.
Attention to Small & Mid Caps
- Shift in focus: More and more investors are looking for alternative opportunities outside of large index values.
- Potential through flexibility: Small and mid caps often benefit more quickly from structural changes or new trends.
- More attractive valuations: Many of these companies are cheaper compared to established Blue Chips.
Outlook
Forecasts suggest that the DAX may consolidate in the short term – according to Trading Economics, a decline of the DE40 to about 23,422 points is expected by the end of the quarter. However, in the long term, both large caps and small/mid caps could benefit as economic conditions improve.
In summary: The phase of strong outperformance among DAX Blue Chips seems to be over for now; instead, smaller companies are now increasingly in focus for many investors – a classic sign of sector rotation in the market.