The impressive price gains of the DAX in the past two years are largely due to a higher rating. Because the profits of the DAX companies have hardly increased because of the weak economy in Germany. In the coming year, however, due to the expansive financial policy in Germany and the tailwind, the DAX company profits will be noticeable again due to lower interest rates from the ECB and the US Federal Reserve. Investors should therefore hold Dax positions despite the now quite high rating and expand in the coming months in the meantime.
Dax records despite stagnating profits
DAX investors have been happy to receive impressive price gains since the beginning of 2024. The DAX course index, in which the annually released dividends are not counted, has increased by impressive 34 percent since then. The expectations of the analysts for the DAX company profits have hardly come off the spot in the same period, but have only increased 4 percent in the years and a half (see graphic 1).