German DAX30 stock index has been one of the weakest so far this year. I’ve been arguing for the past couple of months that if the price of DAX is falling it’s hard to be bullish on stocks as an asset class (see Winter coming?). Many people are refusing to accept that we could see a deeper correction. The same goes to the perma bear camp that refused to accept higher prices until the end of this September.
I, on the other hand, like to keep an open mind and if prices are falling, why not shorting them. They’d fall anyway and it doesn’t do me any good if I’m observing on the sidelines. However, long or short, bullish or bearish, one must respect risks and be willing to accept things could change in a heart beat. Like we did in the first week of October this year.
Like the US FAANG stocks, the bread and butter of their equity market, the German blue chip companies, their auto industry, could be facing turbulent times going forward.Read More