private-wealth stock market indicator gives buy signal.
In July 2021, the economic indicator - part of the private-wealth stock market model - had given a sell signal. As a result, at a DAX level of around 15,600 points, the model reduced the proposed equity allocation from 110 percent (overweight) to 75 percent (underweight).
Now - after a very volatile start to the year - the private-wealth stock market model is going on the offensive again at a DAX level of around 15,100 points.
We explained the logic of the stock market model to you in detail a month ago (LINK).
As explained, in the model we use the ifo business expectations in German industry as an indicator of the influence of the economy on the stock market. If they deteriorate, this is an indication of an economic downturn with...