You would be tempted to think that Germany’s growth in GDP over the past quarter was dismal, 0,1%.
But there is in Germany as is often the case a disjunct between the country’s GDP and its stock exchange and specifically the companies indigenous to that country, but who trade globally.
Look at the growth you could have achieved with selected German stocks if you had bought at the nadir of the crisis on 6th March 2009:
Volkswagen: 438% up!
BMW: 262% up!
Adidas: 272% up!
Bayer: 142% up!
No wonder the DAX (is the DOW and S&P) is at an all time high. How much more room for the upward movement – that’s the question of course.
I have one question though on the issue of “all time high.” Comparing the heights of the DAX, DOW and the S&P in 2007 with the present should take inflation into account, or not? An S&P at 14000 in 2013 surely is not equal to an S&P 14,000 in 2007?
I would love to hear your comments.