DAX Reaches New All-Time High: Opportunities and Risks
The DAX is currently at a record level and has reached a new all-time high of 24,479 points following the interest rate decision of the European Central Bank (ECB). It was expected that the index would remain at this level and show little movement on Whit Monday, which indeed happened: pre-market, the DAX was slightly in the red but remained close to the record value.
Market Situation and Impulses
- ECB as a Driver: Recent impulses from the ECB have significantly boosted the DAX. The monetary policy measures and the outlook for stable or declining interest rates are creating a positive mood in the markets.
- Calm Trading: Despite the record high, the trading volume is rather low, indicating that many investors are either waiting or are already invested. Market analysts are describing the situation as “calm waters” and a consolidation following the strong rise.
- Relevance for Retail Investors: For private investors, the current level is particularly relevant: on the one hand, new highs offer opportunities for further gains, but on the other hand, with each new peak, the risk of a correction also increases.
Warning Signals and Uncertainties
- Two Alarming Indicators: After reaching the all-time high, two indicators are considered warning signals: the valuation (P/E ratio) and volatility. Both could indicate that a consolidation or even a pullback might be imminent.
- Thin Trading: The recent upward movement occurred under very thin trading conditions, suggesting that fewer market participants are active – an indication that not all investors want or can participate in the new highs.
- External Factors: Developments in the USA as well as global trade conflicts can still trigger short-term fluctuations.
Conclusion
While the DAX remains at a record level and benefits from positive impulses from the ECB as well as stable global economic expectations, there are increasing signs that the momentum is slowing down: trading is becoming calmer, warning signals such as high valuations are increasing, and external risks continue to exist. For private investors, this means increased vigilance – both regarding further opportunities and the risk of a possible correction phase.