As we said in our blog during the last weeks it is not good to be invested in Germany and the last week confirmed it. DAX with -3.42% is quite a number if you compare it with other markets: Japan -1.77%, Dow Jones -0.73%, S&P -0.90% and Nasdaq 100 with -0.47%. It looks like the international money avoid Germany right now.
It is the 4th decline in Germany this year. All the other times we got around 6% or 5 % and now we have so far only 3.8%. There is still room for a further decline.
Last time we said do not invest in Germany and the only one we thought might be worth to buy would be Dt. Post. Indeed the paper went up but lost this week what they gained the week before. We spoke in the past about Dt.Bank and that we expect a decline into the area of 22 Euros. They finished this week with 25.45 Euros. Another decrease of 3.93%. Meanwhile the price was reduced in 2014 by a third and reflects the terrible performance of Germany's biggest bank. Looking back we think we were right all the way long and we still think the 22 Euros are possible.
But we might be wrong and they will surprise us at the next earning report on July 29th.
Conclusion for the next week: it is better not to invest in Germany. Keep cash or invest in US.
but as always: just my 5 cents.....
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