DAX Record Series and Correction Risk: An Overview
The DAX has continued its record series, recently reaching a new high of up to 24,400 points. This development is particularly noteworthy as it occurs despite global economic uncertainties and the trade dispute between China and the USA. The positive trend in the German stock market is supported by several factors, including the expectation of a further interest rate cut by the European Central Bank (ECB).
Factors Influencing the DAX
- ECB Interest Rate Cut: The ECB has once again lowered the key interest rate, which did not surprise the market as this was largely expected. However, investors are paying attention to the signals from ECB President Christine Lagarde regarding future actions, as these are crucial for market sentiment.
- Global Trade Dispute: The ongoing trade dispute 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 in recent days.
Correction Risk
The correction risk for the DAX is considered high, as recent gains may lead to a willingness to take profits. After the DAX has reached new record highs several times, the potential for further upward movement has become thinner. Follow-up purchases are lacking, increasing 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 possible price movements. Expectations regarding the ECB and global economic developments can significantly influence the markets. A cautious investment strategy may be wise to prepare for potential corrections.
Summary
- DAX Record Series: The DAX has continued its upward movement and reached a new high.
- ECB Interest Rate Cut: The expected interest rate cut by the ECB did not surprise the market, but signals from Christine Lagarde are crucial.
- Capital Reallocation: Investors are shifting capital from the USA to Europe, supporting the DAX.
- Correction Risk: The risk of a correction is high, as profit-taking is likely and follow-up purchases are absent.