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Germany isn't impacted by the Chinese tariffs like our economy==which some view as the reason for much of our retrenchment...
Another insightful question. I've been for decades a firm believer - nay, an effusive booster - for Germany, German stocks, the German economy and the German approach to modern life (this, coming from a person who lost what would have been a substantial part of his family, to German activities 75 years ago). Yet the DAX has been a perennial laggard. Keep in mind also that the DAX includes dividends... so a graph of where the DAX has been over some number of years, includes assumed reinvestment of dividends. By that measure, it has been a shocking laggard.
Think about it... the one major Western country that has aptly and skillfully navigated globalization, labor relations, environmental regulation, urban-suburban-rural issues,... the one major Western economy that is unafraid of China as an export-power, and which offers its working-class a dignified and reasonable remunerative path through life... nevertheless has been trounced in comparison by American stocks, and is nowise a leader even Europe-wide. Is there some subtle secret here? The DAX "should" be trading at 30,000. And where is it instead?
Nice reversal today. If $VIX gets under 19 we still might get a nice bounce into end of year now. Nice to see some buyers step up finally and save the day.
Germany isn't impacted by the Chinese tariffs like our economy==which some view as the reason for much of our retrenchment...
They're impacted by reduced liquidity from the European Central Bank. The debt purchases have been coming down all year and will end this month. Their market has been in a slow steady downtrend.
The market has had a big bounce inside that rectangle that's boxed in the S&P 500 since January. It hit the lower parallel line this morning.
Think about it... the one major Western country that has aptly and skillfully navigated globalization, labor relations, environmental regulation, urban-suburban-rural issues,... the one major Western economy that is unafraid of China as an export-power, and which offers its working-class a dignified and reasonable remunerative path through life... nevertheless has been trounced in comparison by American stocks, and is nowise a leader even Europe-wide. Is there some subtle secret here? The DAX "should" be trading at 30,000. And where is it instead?
Too much welfare, some would say. I agree with you, a lot to admire about the Germans - but as the saying goes, nice guys finish last. Ruthless, cutthroat exploitation and corporate welfare is clearly the winner.
They're impacted by reduced liquidity from the European Central Bank. The debt purchases have been coming down all year and will end this month. Their market has been in a slow steady downtrend.
The market has had a big bounce inside that rectangle that's boxed in the S&P 500 since January. It hit the lower parallel line this morning.
I appreciate your not making any political assessment
And I remember now that I see your response you referenced the liquidity issue before (as I have although not from a very insightful assessment)...
What about German bonds then?
If their equities are going down, are their bonds any type of safety reserve?
Where would Germans go to get relief from a steep downturn--or do Germans not invest in their market like the US workers do with 401Ks?
What country in the global economy IS having a decent year?
Brazil has come back somewhat I think---
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