Our outlook painted a bearish picture for European equities during July 2018. We concluded that “A correction is highly likely. It will be probably the biggest and longest market drop that we’ve witnessed in a while.” That forecast proved correct already. The second half of last year erased substantial value in European equities. The German DAX index, representing the blue chips of Europe’s largest economy, lost a quarter of its value in the previous year.
The fractals in the German DAX index unfolded in an unorthodox manner since late 2017. The index marked its