The May 2025 was surprisingly positive for investors, especially compared to the traditional stock market wisdom “Sell in May and go away”. The DAX rose by over 6.5% in May, reaching new all-time highs, contradicting the thesis that May is a bad month for investments. This growth was part of a larger trend that led to a rise of about 20% in the DAX in 2025.
Market Developments and Uncertainties
Despite the positive developments, uncertainties remain in the markets. These arise from various factors, including trade policy tensions, particularly related to the tariff policies of the US government. Court rulings have led to confusion here, as tariffs were initially declared void and then re-enforced. Additionally, important economic decisions, such as the interest-rate decision of the European Central Bank, are pending, influenced by inflation data.
Inflation Data and Its Significance
Inflation data plays a central role in assessing the economic situation and influences future interest-rate decisions. In May 2025, inflation in the US remained relatively stable, which could have also contributed to the positive market conditions. In Germany, inflation figures are also in focus, which are relevant for the ECB council meetings.
Conclusion
The dramatic increase of +70% in one day could indicate specific sectors or stocks that grew significantly. However, May 2025 was overall a very good month for investors, especially regarding the DAX. Despite the positive developments, uncertainties persist, exacerbated by political and economic factors.