- DAX provides exposure to a basket of 40 German stocks.
- Over 60% of assets are invested in cyclical industries, which makes DAX extremely vulnerable in my opinion to any economic downturn.
- I believe we are at a tipping point for the German economy and the probability of a recession has increased considerably over the last months.
- For the above-mentioned reasons, I believe the German stock market is at serious risk of suffering a pullback from the current level over the next couple of months.
For further details see:
DAX: The German Economy Continues To Be Under Pressure