Some of the local stuff is pretty bombed out - German REITs for example. Dax has quite a lot of foreign exposure I believe - sort of like FTSE 100 versus 250?
Germany CDAX (all companies listed on Prime and General Standards) is a little cheaper than the DAX, but not by much. the major difference is margins are lower. plus earnings revisions have been consistently revised down for the last 6 months:
certainly nowhere near extreme, but the point is as you say the outlook; sufficiently uncertain to suggest they shouldn't trade rich on absolute terms. with the € -5% ytd vs $, and the DAX dominated by exporters, earnings have had a small FX kicker, yet downgrades are the order of the day since June
“What the Germans don’t want to tell you—because of their previous complaints—is that what really happened to their economy was a rate shock. Get long term rates back to 0 and the cycle will turn up again”
Think the German problem is that it’s experienced so many different shocks at roughly the same time. Rates, energy, China, Russia. Now possibly tariffs.
Comments
Might start buying some
Thx in advance
“What the Germans don’t want to tell you—because of their previous complaints—is that what really happened to their economy was a rate shock. Get long term rates back to 0 and the cycle will turn up again”
This is an actually well measured aggregate—nominal compensation of employees
What’s the crisis?
Would you say the UK is free of any problems? Because the chart looks very similar.
For Germany, you suffered a generational terms of trade shock, since reversed, that you tried to offset with some version of price caps
They should also immediately cancel the MSR