When we talk about the Dax it is basically the Dax performance index, which also includes dividends, what makes it relatively outperforming by nature. The Dax also exists as a pure price index that ignores distributions and therefore only reflects the price changes of the 30 most important German stocks. This barometer offers a better comparison option with the S&P and other price indices.
The main factor for asset values on mid term time frame is bot state of the economy as most believe, but money supply / liquidity, which also impacts economy (but it does not work also the other way around) but on the a slower way and less direct scale than financial markets.
Good point on the DAX. My view on recession is that the underlying reason it may be bad for stonks is that it is associated with rising unemployment. In Germany & most of the EU Employment is protected relative to the US. In the US rising unemployment usually leads to falling consumption which is bad for stonks because the economy is driven my consumer spending.
When we talk about the Dax it is basically the Dax performance index, which also includes dividends, what makes it relatively outperforming by nature. The Dax also exists as a pure price index that ignores distributions and therefore only reflects the price changes of the 30 most important German stocks. This barometer offers a better comparison option with the S&P and other price indices.
The main factor for asset values on mid term time frame is bot state of the economy as most believe, but money supply / liquidity, which also impacts economy (but it does not work also the other way around) but on the a slower way and less direct scale than financial markets.
Good point on the DAX. My view on recession is that the underlying reason it may be bad for stonks is that it is associated with rising unemployment. In Germany & most of the EU Employment is protected relative to the US. In the US rising unemployment usually leads to falling consumption which is bad for stonks because the economy is driven my consumer spending.
Thank you for your insights Jason