The Return of Germany AG: A Comeback of German Stocks
In recent months, the DAX has achieved impressive record highs while US exchanges have stalled. This development is particularly noteworthy as it signifies a strong comeback of the German economy and its leading companies, often referred to as “Germany AG.” Here are some of the key factors and stocks behind this comeback:
Record Highs of the DAX
The DAX has consistently reached new heights in recent months. In May 2025, the index closed at 23,933.48 points, reflecting an increase of 6.67% compared to the previous month. In June 2025, the DAX even reached a record high of almost 24,500 points. This development showcases the strength of the German economy and its leading companies.
Factors Behind the Revival
Several factors are contributing to the success of German stocks:
- Trade Relations: The de-escalation of the trade dispute between the US and China has had positive effects on the German economy. A revised trade proposal from the EU with the US could provide further impulses.
- Strength of German Companies: Many German companies, particularly in the automotive and machinery sectors, have strengthened through innovation and efficiency.
- European Economic Policy: The European Union is working on strengthening the economy through various measures, positively impacting German stocks.
Stocks You Should Have Now
Some German stocks that are particularly interesting belong to sectors benefiting from current market developments:
- Automotive Industry: Companies like Volkswagen and BMW are leaders in electric mobility and are benefiting from the rising demand for sustainable vehicles.
- Engineering: Companies like Siemens and Bosch are key players in industrial transformation and digitalization.
- Chemical and Pharmaceutical: Companies like Bayer and Merck are leaders in the research and development of new products.
Comparison to US Exchanges
While the DAX reaches record highs, US exchanges are struggling to regain their previous heights. The Dow Jones has yet to record gains this year. Rising yields on US Treasury bonds further burden US exchanges.
Conclusion
In summary, the German economy and its stock markets currently occupy a strong position. The combination of improved trade relations, the strength of German companies, and positive economic policy developments in Europe contribute to this success.