As expect the DAX continued to increase. But we did not expect the difficulties. It was not an easy ride. For whatever reason the German market decided to decline in the middle of the week. The DOW did not have the dent during the week. Nevertheless DAX achieved in the end an increase of 0.40% while the DOW achieved -0.19%. Basically the DOW is going in a side trend.
Our investments of last week got a similar development as the DAX. A dent in the middle of the week led to a negative result for the week. But we still think our selections are alright. During the following week we will see if we have to stop. Right now we decided to continue.
Looking at the winner of the week in Germany we get a bad feeling. The traditional water boiling companies, RWE and E.ON got the biggest increase. We do have some trouble to understand how investors can put their money into these companies based on hope the new government will stop the wind and sun energy or the government might subsidize traditional power stations. Bottom line is they currently do not earn enough money with their business model.
Nevertheless we would like to turn your attention to another company of the German DAX: Merck. All indicators are looking good, the 200 days line was crossed last week to the North.
But as always: just my 5 cents
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