Dax beats MDax – but how long will the current trend last?

Dusseldorf If you compare the two highest German stock market leagues, it is noticeable that the MDax has performed better than the Dax over the long term: both indices started in 1988 with 1000 points. The Dax is now trading at around 16,300 points, the MDax even at around 27,500 points.

“The companies in the MDax are smaller, and that’s why there are stronger increases in profits possible than in the Dax,” says Handelsblatt stock market expert Ulf Sommer. “The lower starting basis is the advantage of the smaller stocks.” In addition, very successful stocks rose from the MDax to the Dax. “When that happens, these companies often have a large part of their success story behind them,” explains Sommer.

In the short term, however, the picture looks different: In the past six months, the Dax has gained more than twice as much as the MDax. “And yet the Dax is still cheaper than the MDax,” says Sommer. That is why he believes that the current trend in favor of the Dax should continue for a while.

Also: Markus Kaim from the Science and Politics Foundation speaks about the national security strategy of the federal government.

More: Read the original security strategy paper here.

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