Mortgage for 2021 / Commentary on the Dax record by Christopher Kalbhenn Frankfurt / M. (ots) – Now the Dax has made it too. After Wall Street had rushed from record high to record high for some time and the second-tier indices had long since reached their highs, the German benchmark index broke its high of 13,795 points from February last year on the first trading day after Christmas and is above the 13,800 point threshold for the first time gone up. This is thanks to a generously set table of presents. The EU and the British government came to an agreement almost at the last minute and avoided a hard Brexit; US President Donald Trump waved through the corona aid package that he initially rejected.
The prospects for the coming year are brightening noticeably. The normalization of public life and the recovery of the economy, which became apparent with the start of the vaccination campaigns, is now no longer threatened by the consequences of a chaotic UK exit from the EU. In addition, the risk of interference from Washington will decrease if Joe Biden takes over and the political chaos in the White House comes to an end. This does not end the trade conflict. But the risk of a negative escalation for the stock markets will be significantly reduced if diplomatic means are increasingly used again in the dispute.
In combination with the ultra-expansionary monetary policy and permanently very low interest rates, the basis for further price gains on the stock markets has been laid, so it should only be a matter of time before the Dax breaks the no longer distant threshold of 14,000 meters. There is a great deal of investment-seeking money available, and given that it is more than 18 trillion. Dollar swollen mountains of negative yielding bonds on alternatives to dividend stocks.
However, the boom in the fourth quarter also built up a mortgage for 2021. With the sharp rise in prices and valuations, the recovery of the economy is largely anticipated, which is at the expense of the expected performance. The DAX target most frequently cited by banks is 14,000 points. This would either mean that the forecasts would have to be changed or it would have to be stated that there is not much left to do with the Dax. At the moment, however, the environment suggests that the index will tend towards 15,000 points.
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