DAX Concern

Surveys Say: Wait

  • Why it matters

    Why it matters

    Foreign investors should be wary of getting in on the German DAX’s record high.

  • Facts

    Facts

    • A twice monthly survey of German executives’ investing habits fell below 110 for the first time in two years.
    • Only 32 percent of traders still see the DAX trending upward down 14 percentage points from last week.
    • A barometer of private equity investors has also fallen in the first quarter, down from a record high hit at the end of last year.
  • Audio

    Audio

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Börse Frankfurt
Taking a closer look at the DAX's record course. Source: DPA

Another day, another record. Germany’s blue-chip DAX index of the country’s 30 largest companies surged past the 12,800-points mark Monday morning on the back of a victory by the business-friendly Christian Democrats of Chancellor Angela Merkel in a critical state election over the weekend.

And yet, German executives don’t seem to be joining the party. A survey of the investment habits of CEOs, conducted every two weeks, has fallen into neutral territory for the first time in two years. That means top German managers are no longer buying German stocks.

That was just one of three surveys Monday that signaled the DAX’s record highs may not last much longer. Investors and private-equity managers are starting to get a little skittish, too.

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