Is the German stock market a good buy?

Great graph and analysis showing that Germany’s DAX, the main benchmark for German stock market, again bounced off its book value trendline, just as it did in previous crises. German equities are extremely attractive, in my view, though stock selection is as important as ever.

I am NOT making calls regarding overall market bottoms, but since late last week I have been talking about ‘loading up’ on proverbial babies being thrown out with the bath water, for the long run.

For the millionth time, no money in stocks one expects to need within five years, and the longer the investment time horizon, the better your chances of seeing the compounding effect create wealth for you through equity investing.

Wishful thinking here, but wouldn’t it be great if one of the third-order effects of the coronavirus Covid-19 pandemic were to create the foundation for a long-term stock investing culture in Germany? Buying stocks for the long run is NOT speculation.

Claudio Brocado is the Head of Global Equities at Nuclo Independent CIO