FRANKFURT (dpa-AFX) – After the strong performance this year, many experts are becoming somewhat more cautious about the DAX. There are growing voices that the German benchmark index is running out of steam. It has already gained 22 percent in the current year, clearly outpacing other important indices worldwide. While the DAX rose to a record high of almost 24,500 points on Thursday, the leading US index, the Dow Jones Industrial, has not even posted any gains this year.
“The DAX has been running wild for several months,” wrote DZ Bank analyst Soren Hettler in a strategy paper on Friday. The index is now in the “expensive” range and therefore carries increasing risks of a setback. There are plenty of stumbling blocks, primarily stemming from the policies of US President Donald Trump. He also sees a “significant flaw” in current valuation ratios.
Bank of America reiterated its skepticism on Friday about whether the…
