FGM - The German DAX Has Hit An All-Time High In December And This Is Why
2024-01-25 13:20:39 ET
Summary
- The German stock exchange, DAX, reached a new all-time high despite challenges such as inflation, rising interest rates, and the energy crisis.
- The private domestic sector balance has been in surplus, fueled by government spending and a positive current account balance.
- The recovery of the external sector and strong macroeconomic indicators suggest potential investment opportunities in the DAX.
This article looks at why the German stock exchange, called the DAX, reached a new high point last month. This will be done by looking at the national accounts using a sectoral balance approach, following the research of economist Professor Wynne Godley.
The picture below shows how much the DAX stock market has been trading in the past year....
The German DAX Has Hit An All-Time High In December And This Is Why