The optimism in the markets is exaggerated

Frankfurt The recovery on the stock markets is impressive. The leading German index, the Dax, has gained more than 20 percent since its low for the year at the end of September. And it has been rising for eight weeks in a row – such a long winning streak is a rarity. The rally in the USA is not quite as dynamic, but the broad S&P 500 index has also gained ten percent in value since mid-October.

The stock exchanges are so far ahead of the economic development that capital market strategists like Martin Lück from the world’s largest asset manager Blackrock are now asking themselves: “What have the investors smoked who are now taking action again so courageously?”