German economy languishes, equities still attractive
The largest economy in the eurozone is weakening. The German Dax index has been hit unprecedentedly hard in recent months. The discount that has emerged on equities presents a prime opportunity according to specialists. “The economic situation in Germany is lousy, to say the least, but the stock market looks good.”
An energy crisis is imminent in Germany. The renowned trade surplus became a trade deficit in June. Inflation is dire and consumer confidence is at an all-time low.
'DAX benefits from pro-active German Covid-19 approach’
The German DAX Index has recovered remarkably quickly from the corona slump. Moreover, it’s the best-performing equity market in Europe this year. Germany is benefiting from its pro-active corona approach and the pick-up in economic activity in China, its main export destination, says Christoph Ohme, senior portfolio manager for German equities at asset manager DWS. But German companies now have to live up to investors’ expectations.