There are fewer reasons for falling prices

Dusseldorf It’s almost too good to be true: the leading German index, the Dax, has risen by more than eight percent this year to 15,087 points – a remarkable start to the year. So far, almost all experts who had predicted a difficult start to the year for the Dax were wrong.

Instead, the reasons for falling prices have become fewer: export-oriented German companies are benefiting from the reopening of the Chinese economy, inflationary pressure is decreasing and the risk of recession has also fallen – on Friday the Federal Statistical Office announced that the German economy, contrary to expectations, in the fourth quarter of 2022 has not shrunk.

These developments met extremely pessimistic investor sentiment. At first, a few buyers were enough to drive prices up. Then more and more former naysayers changed their minds, creating a steady stream of new buyers that drove prices higher and higher.