Sometimes markets do what nobody expects. DAX is at a new 4 year high. It is more than 100% higher than in March 2009, at the midst of the financial crisis.
Even compared to this summer, when DAX dropped below 6.000, its performance is amazing (more than 25% higher).
I bet that only a very few people believed we would be closing 2012 so strongly. Maybe some people in the know did.
This is a good lesson for everybody as you see that no matter what the media say, how bad the economic figures are, how bad politicians are etc, the market will go where it wants to go. In this case the direction has clearly been up.
So, congratulations to those who have made money on the long side. I am sure they recognize themselves that fundamentals are weak. But money printing by central banks is a fact, too.
Let’s see how 2013 will look like. Some market people have started speaking about a new mega bull market in stocks. We will see if this plays out…
The index future is currently at 7.670. The all time high from 2007 is over 8.150, merely 6% higher.