Economy Börse Express - OTS: Börsen-Zeitung / Flying high, analysis...

Börse Express – OTS: Börsen-Zeitung / Flying high, analysis of Christopher’s stock market …


Soaring, analysis of Christopher Kalbhenn’s stock market

Frankfurt (ots) – The skyrocket of the stock markets shines through

to be stopped. After the first more sustainable breakthrough of
Dax about that

The record high of almost 13,600 points is the leading German index
on Friday

rose to a record high of 13,789. Based on the
week losing

the German standard index has been up 3.7 percent since the beginning of the year

The steady bull market boom is remarkable
find them

but in an environment in which the prospects for
Global economy,

whose growth has dropped noticeably in the past year,
clearly clouded

to have.

As before, it cannot be estimated at all how the

Corona epidemic will continue to develop or when it will survive
will be. Clear

is just that they already have significant economic damage

The total extent of this damage will not be possible

predict. The fact is that consensus expectations are easy

Accelerated global growth as in the previous year
to be disappointed


The epidemic will be over at some point, but you have to –

Catch-up effects or not – be prepared for that
Growth of

Global economy could also decline in 2020. One look is enough
on China.

Economists have already predicted China’s growth from
6.0 percent

reduced to 5.5 percent – and on the premise that the

reached its peak relatively soon.

The bull market is up despite these adverse circumstances
underlines the

That makes the ultra-loose monetary policy and the extremely low
To have interest.

The central banks are the main driving force of the almost eleven years
ongoing and

thus unusually long bull market. At last they have

Monetary keepers reduced their guiding principle. With that, central banks
since then

Lehman Brothers collapse in September 2008 according to Bank of America

a total of 800 key rate cut steps decided. It is exactly like that
unique as

the currently low interest rate level, which is forcing investors to
Always stronger

to take a risk, and thereby significantly the stock prices, however
others too

Risk assets skyrockets.

800 rate cuts, plus additional support measures such as

Liquidity injections and securities purchases: it is not surprising
that in

in the past few years a getting used to effect among market participants

many of them know nothing else than that. The
Episode is a

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strong confidence that central banks in the event of a crisis
to help

rush and their interventions will also cause adversity from the

Avert global economy and the financial markets.

While it is very likely that the record hunt is under

Prerequisites will continue and the Dax in the foreseeable future
also about

the threshold of 14,000 will rise. Because the investors are missing
given the

mountain of negatively yielding bonds

the alternatives. However, the question of how
far this

the stock markets can still carry upwards. Low interest rates,
thereby relative

cheap valuations and the lack of investment alternatives
not infinite

be able to carry a bull market, if not at some point

fundamental basis.

In any case, it is currently crumbling further. So they will

Dax companies pay dividends for the first time this year
for a long time

decline. In the past week alone, Daimler and
Commerzbank yours

Lower dividends. The Dax dividend yield is in comparison
to with

minus 0.40 percent yielding ten-year federal bond
attractive. Yet

the rise in dividends breaks off.

Especially the German stock market with its high export and

China business share is affected by the virus outbreak. It is

absolute rating already in the demanding area
advanced. Based

the consensus for the aggregate earnings per share of
DAX companies lies

the price-earnings ratio (P / E ratio) is currently almost 15. The consensus

however still double-digit earnings growth. A growth of
5 percent

assumed the P / E ratio would be 15.6. This is anything but one

Valuation levels.

Press contact:

Stock exchanges newspaper

editorial staff

Telephone: 069–2732-0

Further material:

OTS: Börsen-Zeitung

AXC0305 2020-02-14 / 20:37

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