Germany is the economic engine of Europe. And its stock market has just gone off a cliff...
THE CRISIS in the Eurozone is hammering Germany's banks. Not only that, it's hammering the "DAX" as well. And that's very, very bad, writes Brian Hunt in Steve Sjuggerud's Daily Wealth.
The DAX consists of the biggest blue-chip German companies. Names you'll recognize here include BMW, Merck, Bayer, Adidas, Daimler, BASF, and Volkswagen. As you can see from today's chart, these blue chips are in crash mode.
The DAX has fallen 31% in the past two months. This type of move is the mark of a region in crisis.
The seasoned investor expects the European countries of Greece and Italy to go through economic and political crises once every few decades. These countries have long histories of debt defaults, tax corruption, and political turmoil. They're not viewed as great investment destinations.
Germany, on the other hand, is the economic engine of Europe. It has low unemployment, an excellent manufacturing base, and a "top 10 in the world" credit rating. Only last year did China surpass "Deutschland" as the world's No. 1 exporter. That's what makes the awful chart of the DAX so worrisome...
Source; http://goldnews.bullionvault.com
No comments:
Post a Comment