The Dax faces a similar fate to emerging markets


on the trading floor of the Frankfurt Stock Exchange

The leading index Dax faces price risk due to the large number of foreign investors.


(Photo: dpa)

German investors own less than a third of Dax companies. This is good news, the scoffers may say: this is how many have avoided major losses in the stock markets this year.

In fact, this addiction puts the courses at risk. The share of foreign shareholders has been high in the past, but this has not had a negative impact. But that was in times of stable exchange rates. However, the euro has depreciated by 13 percent against the dollar this year.

As a result, exchange rate risk has gained importance in investment decisions. The picture for dollar zone shareholders in Europe is even bleaker than it is.

That alone can change prices. However, the large number of foreign investors only created an explosive force in the second development: the importance of the German stock market in the world is declining.

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