Stock market veteran Ehrhardt: 16.000 points for the Dax are possible

The statistics is on the side of the investors. "For the last 100 years on the world market and Wall Street, I have calculated: If the shares were in a year is

Stock market veteran Ehrhardt: 16.000 points for the Dax are possible

The statistics is on the side of the investors. "For the last 100 years on the world market and Wall Street, I have calculated: If the shares were in a year is very good, it gave also in the following years, in three-quarters of the cases gains of between ten and 15 percent," said stock market professional, Jens Ehrhardt, in an Interview with the "Handelsblatt".

once Again the us markets are likely to sprint in advance. The comparison between course-testifies-Dax (without dividends) and the American S&P 500. "In fact, Since the financial crisis eleven years ago, the US share increased five-fold, while the German standard values have only doubled to a little more than," says the expert. DAX 13.479,66 PTS. +197,92 (+1,49%) Declared Xetra

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the advantage of the US title Ehrhardt with the share repurchases in the United States, the budget deficit and tax policy Trumps. Also, the Central Bank, the Fed, which has just begun purchases with billion-dollar Bonds, at the same time support Ehrhardt, according to the courses.

This factor is likely to help this year, definitely longer. Because: "In November, the presidential elections are coming up. And in an election year, the Central Bank slowed money politically," said Ehrhardt of the "Handelsblatt". Are you interested in in addition to values? The professionally managed trading service "Small Caps Champion" takes all the Research and analysis work. (Partner offer) Now 30 days free of charge test!

Three months correction then up again

About the Coronavirus outbreak – the current number One issue – not Ehrhardt Worry too much. A crucial question is whether the measures to combat the outbreak affected the global economy really is the stock exchange professional, according to. "In the past, such epidemics have pushed the stock markets never, in the long term," commented Ehrhardt.

A short-term correction Ehrhardt holds still possible. The expert expects a decline over a period of up to three months, before the rates rise again. But then it could go right, as Ehrhardt suggests: "Purely technically, if I look at, so the long-term pattern, it can rise in the Dax of at least 16,000 points". This represents an increase of almost 19 percent from the current level, after a good 25 percent increase in the stock market year 2019. With Stock Selection in Europe, you will achieve excess Returns with System! (Partner offer) Now 30 days free of charge test!

Also for the time after 2020, Ehrhardt remains optimistic. "In the past year, investors have bought record amounts of bond funds and sold equity funds," said Ehrhardt, "this Trend in the medium term will turn". This will give the stock a tailwind, expected Ehrhardt.

Despite all the Confidence in the asset Manager also sees risks. So the optimism of the investors have reached several indicators point to extreme Level, a similar situation as in January 2018. "In February, prices fell sharply then," said the professional. Concerns, taken together, give the reviews, such as in the case of Tech stocks such as Apple or Microsoft, which are alone worth more than the 30 Dax titles.

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Date Of Update: 05 February 2020, 16:00
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