A calculation shows why equities are still attractive

The turning point came suddenly and sharply: At the start of trading on Monday, the leading German index, the Dax, fell like a stone by more than 300 points or 2.1 percent within a few minutes. It looked like a black trading day. But the following course correction was just as strong, at the end of which the Dax even ended trading with an increase of 1.1 percent at 14,933 points.

This willingness to buy shows that the strong price gains in the first few months of 2023 are currently not being interpreted as a bear market rally – i.e. as a short phase of rising prices within a long phase of falling prices. Instead, price setbacks are used by a sufficient number of investors as an opportunity to enter or to top up. On the one hand, this stabilizes prices and, on the other hand, strengthens confidence in the stock market.