Investors in high spirits Why the DAX rushes from record to record

Status: 14.06.2021 4:03 p.m.

While the economy is only slowly picking up pace after the Corona openings, the German stock market does not seem to be stopping. What are the main reasons for the price boom? From Lothar Gries, tagesschau.de The German leading index DAX rose by up to 0.7 percent in the morning and climbed to a record high of 15,802 points – the 23rd record this year. The index has risen by 15 percent since the beginning of the year. The stock exchanges are also in record-breaking mood at the European level. The Stoxx 600 index, comprising 600 values, also climbed 0.7 percent today and reached its 38th high this year with 460.51 points. The stock markets are fired from several sides. The most important driver is the expansionary monetary policy of the central banks in the USA and Europe. Since the European Central Bank (ECB) lowered the key interest rate to zero on March 10, 2016, i.e. more than five years ago, the returns on traditional savings offers from banks and savings banks have also shrunk to such an extent that even risk-averse German investors are looking for alternatives have looked around. In addition to real estate and precious metals, stocks are very popular.

More and more shareholders

In this country there were as many shareholders last year as last year in 2001, as determined by the German Stock Institute (DAI). According to this, 12.4 million people in Germany have invested in the stock market, i.e. they owned exchange-traded securities such as fund shares or stocks. Compared to 2019, that’s an increase of 2.7 million or 28 percent. The downward trend of previous years has thus been completely reversed. After the dot-com bubble burst in 2000, the number of equity investors in Germany steadily declined – until interest rates sank to virtually zero. But the ECB has not only boosted the number of shareholders and thus share investments, it is also active on the capital markets itself. In order to keep the economic effects of the corona pandemic as low as possible, the central bank is pumping many millions of euros into the market every day. To do this, it buys bonds issued by governments and companies. By the end of March 2022, she wants to spend the gigantic sum of 1.85 trillion euros, a number with twelve zeros. A considerable part of it flows into the stock market and drives prices to ever new heights.

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No end of the flood in sight

In the past few weeks, there have been repeated suspicions that the central banks in Europe and the USA will soon be able to turn the money off again because inflation is reporting back and price increases have shot far beyond the monetary authorities’ targets. But both Jerome Powell, the head of the US Federal Reserve (Fed), and ECB President Christine Lagarde initially gave the all-clear. Just today, Lagarde said in an interview with the magazine “Politico” that the time was not yet ripe for a discussion about an end to the crisis bond purchases by the central bank. “It is far too early to debate these issues,” said Lagarde. The economic recovery must be firm, solid and sustainable. Don’t take a patient’s crutches off until the muscles begin to build up sufficiently – so that the patient can move on their own two legs again.

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V-shaped economic recovery expected

In addition, investors are assuming that the pandemic-related restrictions will end soon. “The pandemic is no longer an issue at the latest with the now significantly lower number of new infections, and investors also seem to be able to come to terms more and more with the fear of inflation,” says market expert Milan Cutkovic from brokerage firm Axi. With the decline in Covid-19 restrictions, growth expectations are skyrocketing around the globe. The Organization for Economic Cooperation and Development (OECD) expects the global economy to grow by 5.7 percent this year. For Germany, the federal government expects growth of up to four percent. The prognosis from the beginning of the Corona crisis that there will be a V-effect in which the economy first collapses, but then quickly recovers, seems to be confirmed. This is rather good news for equity investors, because they hope that a growing economy will generate increasing profits and thus rising prices for listed companies.

Price turbulence ahead?

This combination of a zero interest rate policy, a glut of money from the central banks, a growing number of shareholders and the expectation of a rapid recovery in the global economy is driving share prices to ever new heights. But the air is getting thinner. Many investors are watching the Fed’s monetary policy deliberations this Wednesday. It is true that the Fed is not expected to deviate from its current course and end the boom in the financial markets. “But their projections on inflation, interest rates and the economy could cause price turbulence,” says Naeem Aslam, chief market analyst at the brokerage firm AvaTrade.

For hundreds of years, the world has never stopped admiring the artifacts of architecture, painting, music, cinema, fashion and later industrial products “Made in Italy”. The “works” originating from this land contain the enchanting vision and style of “La Dolce Vita” full of sweetness of Italy. The enchanting style “La Dolce Vita” is full of sweetness and romantic If you have ever set foot in Italy, you will feel the spirit of “La Dolce Vita” clearly present throughout every corner of this country. Every street corner in Italy has beautiful little cafes and classy restaurants. In the hands of a warm cup of Cappuccino in the morning, with cocktails in the afternoon, walking on the hundred-year-old cobblestone streets in Rome brings a feeling of sweetness and romance. The sweet taste of “La Dolce Vita” that Italians want to give is also products with the “Made in Italy” brand. Feeling overwhelmed when admiring the trendy designs from famous fashion houses such as Versace, Gucci, Valentino or Dolce & Gabbana in the fashion capital of Milan. Romantic fashionistas on the street in Italy (photo source internet) You can easily see fashionistas, romantic boys running Vespa, girls with golden hair like sunshine and deep eyes walking on the street… They always exude a characteristic luxurious and liberal aura. of the Mediterranean Sea. Sweet and full of passion According to research from the University of Leicester, Italians are generally healthier and live longer than many other European countries. Their secret is to make every moment of life sweet and memorable, every moment in the present moment worth savoring with all the senses. With Italians, there will be no rushed dinners, 15-minute meetings enough for a cup of coffee. An Italian cafe is always an Italian space. They have such a deep need for communication and conversation that they temporarily forget the concept of time. Italians often gather and spend time with their families nh (image source internet) Italian food culture conquers the world with its regional diversity and richness of differences in taste. Spaghetti is one of the indispensable dishes on the Italian menu, pizza was transformed into a dish for royalty by Queen Margherita. You won’t see any Italian girl turning down pizza for fear of the calories they’ll have to consume. They’ll eat gelato ice cream cones, but they’ll also eat homemade salads from ingredients picked from the home garden. Like a glass of wine from the Chianti Classico region, Italian cuisine draws people into ecstatic, passionate and passionate love. Italians always cherish every family moment (photo source internet) Italians bring the spirit of La Dolce Vita to everything around them. They put family connection first, value friendship like a treasure, never shy to talk about love and always cherish every moment of the present. And just like that, the melody of their lives rang out, with more-than-sweet sounds! The Art of Living La Dolce Vita spread Italians are not just sweet – Living La Dolce Vita takes you to the beautiful land of Bel Baese. That country captivates people with overflowing love and romance, with a culture spanning thousands of years of history, with painting, architecture, cuisine and not to be missed: The Art of Living La Dolce Vita. Danko City with “La Dolce Vita” moments The style of living fully in the present, cherishing love, blowing sweetly and romantically to every moment in life has spread all over the world, including Vietnam. Danko Group also contributes to spreading “La Dolce Vita” moments to Vietnamese families. The Little Venice subdivision at Danko City Thai Nguyen will bring a standard Italian lifestyle – La dolce Vita full of energy and positivity. Little Venice at Danko City Urban Area covers the clear blue Dragon’s Eye Lake Inspired and distilled from the most romantic city in the world – Venice (Italy), 68 duplex villas and 32 Shophouses in the Little Venice subdivision of Danko City Urban Area are likened to a miniature “kingdom”. covering the clear blue Dragon Eye Lake, recreating a riverside city in the heart of Thai Nguyen with Italian character.

Coming to Hue, watching Hue at night will have different experiences about the ancient capital. (Da Vien Bridge in the night). Hue night of the city gates is silent at the same time, of the spans of Truong Tien Bridge gently sparkling in the hair of loved ones. Trang Tien Bridge is the most beautiful bridge in Hue today. Perhaps anyone who comes to Hue wants to take a stroll through. this poetic place once. But if just to see and enjoy the scenery, visitors should wait at night on weekends to be the most beautiful. On weekend nights, visitors will see the outstanding and brilliant Trang Tien Bridge in a colorful sparkling outfit of thousands of shimmering lights that change color continuously. Some people therefore compare Trang Tien Bridge to a beautiful rainbow at night. Back to Truong Tien. The night wind blows, the mist from the Perfume stream is cold into our souls, lightening all worries. Modern life momentarily seems to stand still, forgetting the heart, echoing the sweet and gentle chanting, from the image “On the Huong Giang river / I let go of the oars…” Hue turns around with the rhythm of time, next to the mossy ancients. New roads, new bridges spring up in the heart of the city. Although more modern, it still has a timeless contemplation. (The Ngu Phung floor in the night). Ngu Phung floor in the night. Couple’s night City at night seen from above. City center at night. Phu Xuan Bridge seen from above at night Hien Nhon door shimmering in the night of fireworks The rhythms of everyday life but in the night seem softer, more poetic and romantic. The janitors in the night… … street vendors are still here and there on every small street… Hue is still so gentle to every moment of the night…