FRANKFURT (DEUTSCHE-BOERSE AG) – In view of the DAX’s record run, Christoph Frank reminds us of small and micro caps, many of which are trading below their book value, and outlines opportunities.
February 17, 2025 – It sounds like something from a parallel universe, but it’s actually from this world: German equities are performing significantly better than US equities! At least since the beginning of the year, the German benchmark index DAX and its “little brothers” MDAX and SDAX have clearly outperformed their US counterparts S&P 500 and Nasdaq 100.
Remarkably, the blue chips have risen even more strongly than the small caps so far in 2025. Apparently, foreign investors prefer to pounce on the better-known large corporations from the DAX and are somewhat more cautious when it comes to smaller-capitalized companies. This cannot be due to valuations, as small caps are, on average, significantly cheaper in terms of most common…
