I am very bullish on DAX, obviously not yet.
Due to obvious reasons (German dependency on Russian commodities) and feared stagnation in Europe are creating selling pressure on European Indexes, mostly German and Italian. OK that's nothing new - but why am I bullish??
War is BULLISH
Obviously I am saddened by the current situation (Slava Ukraine!) but one way or another, War is bullish - more concretely, the government spending that comes with it.
As we know Germany pledged 100billioEUR extra to its defence budget + increasing its annual defence spent to 2% of GDP, which is 3.806 trillion USD for FY22. We can expect some other European economies to follow this.
This significant increase in industrial spent in EU will benefit especially German economy - heavily focused on industrial manufacturing.
There might be more pain short-term pain ahead, but once the sky is clear, buy buy buy buy!
Slava Ukraine!
TA
Due to obvious reasons (German dependency on Russian commodities) and feared stagnation in Europe are creating selling pressure on European Indexes, mostly German and Italian. OK that's nothing new - but why am I bullish??
War is BULLISH
Obviously I am saddened by the current situation (Slava Ukraine!) but one way or another, War is bullish - more concretely, the government spending that comes with it.
As we know Germany pledged 100billioEUR extra to its defence budget + increasing its annual defence spent to 2% of GDP, which is 3.806 trillion USD for FY22. We can expect some other European economies to follow this.
This significant increase in industrial spent in EU will benefit especially German economy - heavily focused on industrial manufacturing.
There might be more pain short-term pain ahead, but once the sky is clear, buy buy buy buy!
Slava Ukraine!
TA
Comment:
DAX opened even lower Sunday night.Geopolitical issues remain so stay on a side line for now.