: German stocks near fresh record on growth and energy cost optimism

by | May 19, 2023 | Stock Market

Germany’s blue-chip index is a eyeing a fresh record as investors warm to its tech-lite mix of relatively lowly-valued but high quality industrials, carmakers, insurance and healthcare companies. The DAX
which was the DAX 30 until 10 more companies were added in September 2021, at one point on Thursday was up more than 1.5% to sit less than 0.5% from its previous closing high of 16,271.75  hit in early January 2022.

One way for U.S. investors to track German stocks is via the Global X DAX Germany ETF
A broader European vehicle is the Vanguard FTSE Europe ETF
It’s been a long journey, but the DAX has finally caught back up with Wall Street after underperforming for much of the three years since the COVID-19 pandemic panic struck markets.

Indeed, since the S&P 500 hit its bear market trough in October 2022, as investors fretted about how multi-decade high inflation would cause the Federal Reserve to spike borrowing costs, the DAX 40 has rebounded 35% to the S&P’s 16%. So, what’s behind this rejuvenation? To simplify, many of the things that were making German …

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