Engineered for strength

German strength

The German DAX30 has performed the most resiliently out of all the European stock indices. However it reached it’s Cycle Wave 5 top in Aug 2013, and the trend is now down. Germany has the best fiscal management in Europe, and hence the lowest bond yields. With unemployment only at 5.3%, it is also the best positioned to deal with a downturn. We expect German companies to survive the coming crisis in a much better shape than its European counterparts.

DAX 1990 - 2013

See Could the Dow Industrials be hitting a Grand Supercycle Top?  for more information on longer term trends of Cycle, Supercycle, and Grand Supercycle Degree.