Odin's Blessing or Thor's Wrath? German DAX Dances on a Knife's Edge!

A Viking's Eye on Valhalla...and Wall Street

Hark I Ragnar Lothbrok turn my gaze from raiding England to matters of coin and commerce! It seems these Germans not known for their longboats but for their… lederhosen… are doing something right. Their DAX index is climbing higher than a Valkyrie on a mission fueled by new leaders and promises of gods forgive me *more* spending! They ramp up defence spending and I laugh! More axes for all! 'My sons will avenge me!' I scream into the wind but secretly pray they invest wisely.

The American Dream...or a Fool's Errand?

I hear whispers of 'Sell America,' a sentiment I understand well when looting their monasteries. But this time it's about coin not crosses. Their President with hair like a startled raven caused such a stir with his trade policies that coin flowed out like ale after a victory feast. But now the Americans and the Chinese have agreed to a 'pause' – a word as foreign to a Viking as bathing daily. Now Wall Street struts again drawing coin back across the great ocean. Is this Odin’s trickery? I ponder this deeply. One must always consider the odds just like when I was planning to raid Northumbria.

Deutsche Bank's Bold Boast: 25,000 Points!

These Deutsche Bank folk are bolder than Bjorn Ironside facing a bear! They predict the DAX will reach 25,000 points! They say that they are most bullish about German stocks and they expect the same to happen this year. Such confidence! They believe Germany's political stability and economic outlook are brighter than a summer solstice. But remember even the Seer couldn't predict every twist in my fate. Still I respect their confidence. 'Fear is always with you but you don't have to obey it,' as I always say.

Headwinds and Hidden Reefs

Ostwald from ADM Investor Services agrees there's upside but he cautions about U.S. EU squabbles and whether these new German leaders will actually *do* anything. Promises are as common as sea birds over Kattegat but actions are the true measure of a leader. He expects that expiry equity options will limit gains but barring adverse trade or geopolitical news this rally has further to run. Just like sailing to England it requires strategy luck and a healthy dose of bloodlust. 'I don't believe in Gods,' I tell him. 'People are the Gods.'

The Allure of America (Again?)

Coatsworth from AJ Bell speaks of an 'addiction to North America.' These investors they crave the familiar even if it's a poisoned chalice. He notes the DAX is becoming expensive less of a bargain than before. The S&P 500's rebound might tempt investors back leading to a sell off in German equities. A wise Viking diversifies his plunder! Don't put all your gold in one chest lest a rival tribe steal it all. 'Life is a tragedy for those who feel and a comedy for those who think,' so better to hedge the bets.

The Looming Shadows

Brzeski from ING throws a wrench in the works. If the Americans avoid disaster and this talk of de dollarisation proves false coin may flow back leaving the DAX high and dry. Furthermore if Germany's promises of growth take too long to materialize investors may grow impatient. Like waiting for the wind to fill the sails patience is key but even Vikings have their limits. This I tell you as a word of caution. Now I'm off to plan a raid...or perhaps invest in some German lederhosen futures. 'How I long to be sailing!'