German stock markets' surge – Could DZ Bank's Mega-DAX prediction signal further growth?
The German DAX index has seen a remarkable surge since the commencement of the year, already registering double-digit gains. This ascension has persisted despite various geopolitical uncertainties and risk factors, with the index scaling one peak after another.
Experts at DZ Bank, however, believe this upward trend is far from reaching its climax. They forecast that under specific conditions, the DAX could soar to a historic record of 24,000 points. This raises the question: Is this the onset of a mega rally for investors?
The prediction of DZ Bank analysts is unambiguous. They posit that under certain circumstances, the DAX could surpass the 24,000 point barrier within the next three months. One crucial factor responsible for this projection is the market's response during Donald Trump's first term. If this response repeats, the current rally might extend further.
However, it's crucial to note that the environment favoring the DAX and the Euro Stoxx 50 during 2017 differs significantly from today. The experts warn that the initial euphoria under Trump's first presidency was followed by challenging times for European stock markets.
While a continuance of the rally is plausible, European indices may be more vulnerable to setbacks in the current scenario. Given the strong gains since Trump's election in November—the DAX has risen by 13 percent against the previous 10 percent gain in three months—it's possible that uncertainty about US economic and trade policy could manifest more swiftly, especially with Europe's weaker economic stance.
In conclusion, the DAX could attain new record highs in the short term, yet an unhindered rally is far from guaranteed. Investors are advised to remain vigilant, considering the inherent risks involved.
Investing in the stock-market, specifically the DAX index, may witness a potential historic surge to 24,000 points, as predicted by DZ Bank analysts. However, despite the possibility of new record highs, it's important for finance enthusiasts to remain cautious as an unhindered rally could be subject to geopolitical uncertainties.
