The Dax, Germany’s primary stock index, has seen a resurgence in recent days, recovering from previous losses and climbing higher. This has been driven in part by strong performances on US markets, which have in turn bolstered confidence among investors in Germany.
However, analysts warn that this optimism may be misplaced, and caution against excessive risk-taking. The Dax remains below its all-time high, attained just before the outbreak of the coronavirus pandemic early this year.
Nonetheless, the recent trend is positive, and if it continues, the Dax could erase its losses for the year and potentially even end 2020 in positive territory. This would be a welcome development for the German economy, which has been hit hard by the pandemic.
Our Opinion
Right now might not be the best time to invest in the dax, considering the current market conditions. However, if you have a long-term investment strategy, the dax might be a good option. The dax has recovered from its lows in recent years, and if the current trend continues, it could provide good returns in the future.
Of course, no investment is without risk, and the dax is no exception. The current market conditions could change at any time, and there is always the potential for unforeseen events that could affect the dax negatively. However, if you are willing to accept the risks, investing in the dax could be a good way to grow your portfolio.
