Dax outlook: Despite all the crises: shares remain attractive

Frankfurt The lockdowns in China, the war in Ukraine and the interest rate hike in the US harbor obvious economic risks that have so far been ignored in companies’ profit expectations. The analysts at DZ Bank are now taking these risks into account and are adjusting the index forecasts without, according to their own statements, becoming unnecessarily pessimistic.

Referring to previous crisis years with a similar economic environment, they make conservative assumptions about further earnings growth and the recovery of share valuations. Equities remain attractive in this assessment, because every crisis is followed by an upswing. A medium-term improvement in the general crisis situation is likely.

Contrary to all expectations, according to DZ Bank, the profits and expectations of companies in the current year have proved to be very robust overall. Possible reasons, according to the bank, may lie in the underestimated pricing power of the large listed stock corporations.