Dax in the plus: Error of the markets

Dstock markets have a problem. They are subject to mood swings. And quite violent. From overjoyed joy to sorrow to death is often just a short distance. At the end of September, they still thought that the winter would be terribly cold. Gas will not be enough. Factories will close. Ludwigshafen with the dark BASF factory, Leverkusen without Bayer. Since many suppliers are also out of gas, the entire economy is practically idle as everyone somewhere is missing particles to complete a machine, car or solar system.

Today’s mood: we have enough gas, companies are making record profits, high prices can be passed on to customers. Central banks won’t hold back the economy, they’ll probably be smart enough to not raise interest rates as much. Especially since peak inflation is behind us anyway. Everything is going to be fine! This took the Dax from 11,863 points at the end of September to more than 14,570 points this week. A 23 percent increase in eight weeks. Not bad.

Dogs that had just been defeated became popular again. For example, Siemens Energy. Who needs gas turbines when pipelines from Russia are empty? Low price in October 10 euros. Since then, the price has increased by 60 percent. All Dax values ​​managed to break away from their annual lows. You in M-Dax too.

Even property values, although the lows have not yet been fully consumed. Some market participants seem to believe that business models once hailed as sound will disappear when interest rates turn around. Weekly loser TAG Immobilien is currently trading at a price-to-earnings ratio of 5, which is dirt cheap for a real estate stock.

Apple Teamviewer fixed?

Or team viewer. The Corona winner and remote software maintenance specialist’s share was beaten to 7.67 euros. In the exuberance of euphoria, he once came up with the idea of ​​becoming the main sponsor of Manchester United. That costs Šváby 50 million euros a year. Shareholders are putting pressure on an early termination of the whole matter. When rumors swirled that Apple might take over English soccer record champions Manchester United, the markets immediately sensed an opportunity for Teamviewer to end its costly foray into the big world of soccer. The share cost more than twelve euros for the first time since June. Analysts upgraded the stock.

What conclusions can investors draw from the past few weeks? Stock markets are exaggerating. The abysmal pessimism at the end of September was not misplaced, and neither is the recklessness currently spreading. These are great times for investors. In pessimistic phases, stocks can be bought cheaper than ever before.

And in carefree phases, you can let the gains run until you feel overconfident. Unfortunately, no one knows exactly when that will be. That’s why investors who don’t go through the whole circus of moods, who instead drink Coke long-term and trust a brand like Warren Buffett, will do best. He and many others have remained loyal to their favorite companies with success for decades.

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