Why the rally has good reasons and is still fragile

2023-06-18 15:57:09

Frankfurt Stock Exchange

The German stock market has risen rapidly in recent months. For many experts, this is happening too quickly. They warn of price risks.

(Photo: Reuters)

Düsseldorf Rising interest rates? economic risks? And if so! The German stock market is currently shaking off all negative factors. On Friday, the leading index Dax rose to 16,427 points, setting the second record high in a week.

But the upward trend is fragile. Things are bubbling beneath the surface of the rally, which has meanwhile carried the Frankfurt stock market barometer up by more than 35 percent since the beginning of October.

Michael Herzum, chief strategist at Union Investment, warns: “Investors are faced with a capital market environment with low growth and high key interest rates for a long time.” Luca Paolini, chief strategist at Pictet Asset Management, still considers the situation on the financial markets to be “relatively critical “. He advises underweight equities in the portfolio.

Read on now

Get access to this and every other article in the

Web and in our app free of charge for 4 weeks.

Further

Read on now

Get access to this and every other article in the

web and in our app.

Further