DAX Record Series and Correction Risk: An Overview
The DAX has continued its record series and recently reached a new high of up to 24,400 points. This development is particularly remarkable as it occurs despite global economic uncertainties and the trade conflict between China and the USA. The positive trend in the German stock market is supported by several factors, including the expectation of further interest rate cuts by the European Central Bank (ECB).
Factors Influencing the DAX
- ECB Interest Rate Cut: The ECB has again lowered the key interest rate, which did not surprise the market as this was largely expected. However, investors are watching for signals from ECB President Christine Lagarde regarding future measures, as these are crucial for market sentiment.
- Global Trade Conflict: The ongoing trade conflict between the USA and China remains a factor of uncertainty affecting the markets. Nevertheless, the DAX has continued its upward movement.
- Capital Reallocation: Global investors are shifting their capital from the USA to Europe, further supporting the DAX. However, the pace of this reallocation has slowed down in recent days.
Correction Risk
The correction risk for the DAX is assessed as high, as the recent gains could lead to a willingness to take profits. After the DAX has repeatedly reached new record highs, the potential for further upward movements has diminished. Follow-up purchases are lacking, which increases the risk of a correction.
Outlook for Private Investors and Savers
For private investors and savers, it is important to keep an eye on market sentiment and potential price movements. Expectations regarding the ECB and global economic developments can significantly influence the markets. A cautious investment strategy might be sensible to be prepared for possible corrections.
Summary
- DAX Record Series: The DAX has continued its upward movement and reached a new high.
- ECB Interest Rate Cut: The anticipated interest rate cut by the ECB did not surprise the market, but the signals from Christine Lagarde are crucial.
- Capital Reallocation: Investors are shifting capital from the USA to Europe, which supports the DAX.
- Correction Risk: The risk of a correction is high, as profit-taking is likely and follow-up purchases are lacking.