DAX

DAX rises to 15,000 points by the end of the year

DAX companies have come through the crisis year 2020 very well. The reporting season for the final quarter is still underway, but company sales are expected to have fallen by only four percent last year. Profits should have been 14 percent lower than in 2019. In previous recessions, profits fell by an average of one-third, much more than last year. Equity analysts expect profits in Germany’s leading index to rise by 30 percent this year and post record profits again as early as 2022. Although companies‘ earnings expectations in the past have (almost) always proved to be too optimistic in retrospect, this assessment is in line with the course of previous earnings cycles on the stock market. As a rule, it took around two and a half years for the old profit highs to be reached again. The prerequisite for a sustained recovery in corporate profits remains a stable forecast…