Know how to predict the stock market

German stock market: Forecasts for DAX stocks

German stock market: It's teeming with news and information on stocks from the indices (DAX, MDAX, SDAX, TecDAX). How do investors keep track of the many stock market forecasts? How can you achieve performance as a shareholder? An important starting point for investors is understanding how the stock market basically works. Stock markets are public markets on which shares are regulated or issued, bought and sold over the counter, i.e. they can be traded.

The Stock market takes on two very important tasks. The first is to provide capital to companies to finance and grow their business ventures. The capital market is therefore an important instrument for allocating funds within an economy. An efficient and functioning stock market is therefore absolutely important for the economic development of a country.

The second function of the stock market is to give investors who make their capital available the opportunity to participate in the development of listed companies. Investors can benefit from stock purchases in two ways. Some companies pay regular Dividendsso that the shareholders can achieve a regular income independent of exchange rates. The other chance is in Selling stocks with more percent Profitif the current rate has developed positively compared to the purchase price in euros.

As Market participants There are shareholders, investors (institutional investors or private investors), issuers, credit institutions as well as stock exchange dealers and brokers on the stock market.

The largest stock market is clearly in the US with the New York Stock Exchange (NYSE; trading volume of US $ 3,327 billion) and the multilateral trading platforms of BATS Global Markets with a volume of US $ 2,848 billion and the technology exchange Nasdaq Inc. (Trading volume: $ 2,652 billion). The main indices are on the American stock exchanges are the Dow Jones Industrial, NASDAQ 100, S&P 500.

Stock exchanges such as the Frankfurt Stock Exchange (Xetra 1,570 billion euros) or the Stuttgart Stock Exchange (71.2 billion euros) are a central part of the stock market in Germany with the DAX family. The stock exchanges in Frankfurt, Berlin, Düsseldorf, Hamburg, Hanover and Munich are traded from Monday to Friday between 8:00 a.m. and 8:00 p.m. At the Stuttgart Stock Exchange and the Tradegate trading center in Berlin, trading runs from 8:00 a.m. to 10:00 p.m.

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DAX stocks - the driving force on the German stock market

The performance of DAX stocks are extremely attractive for investors. But have you ever wondered how the DAX is actually structured? Which sectors include DAX stocks? The DAX, the most important German share index (DAX), comprises the 30 largest and, based on the free float, market capitalization (The Market capitalization, also market capitalization or market value, is the total value of the securities in circulation of a company), the most liquid company on the German stock market. The origins of the DAX go back to an index from the Börsen-Zeitung back to 1959. In 1988, the DAX, as it is known today, was officially introduced under the patronage of the German stock exchange, the Frankfurt stock exchange and the Börsen-Zeitung.

In contrast to many other indices, the DAX is a performance index. This means that the dividends of the companies listed in the DAX are arithmetically reinvested. In order to be included in the DAX, certain standards must be met. The company must be listed in the Prime Standard of the Frankfurt Stock Exchange, continuously traded on Xetra and have a free float of at least 10%. In addition, the company's headquarters must be in Germany or the focus of trading turnover in shares must be in Frankfurt. The further selection from the companies that meet these basic criteria is made on the basis of the exchange turnover (turnover on Xetra and in Frankfurt floor trading) and the free float market capitalization.

The companies in the index are weighted on the basis of their free float market capitalization. A look at those represented Industry sectors gives interesting references to the German Economic structure. By far the largest branch of the DAX includes corporations from the electronics, hardware and software sectors. Behind it hide in DAX stocks Heavyweights like SAP, Siemens or Deutsche Telekom. The financial sector ranks second among the DAX stocks with Deutsche Bank, Deutsche Börse and the two insurance companies Allianz and Munich Re. In third place among the DAX shares is the chemical, pharmaceutical, bio and medical technology sector. Large companies DAX stocks such as BASF, Bayer or Merck can be found here. Due to the export orientation of major German companies, DAX shares are heavily dependent on international markets and global economic cycles.

In addition to the DAX, there is also the MDAX, SDAX and TecDAX. More information on this below.

 

Make informed stock market forecasts

Who would not like to have a crystal ball for their finances and investments in the stock market to see into the future of the Stock market forecasts to watch, to know the news and to bet on the price of the winning shares in order to achieve more performance? Various price news and stock market forecasts outperform each other annually with either black markings or pure optimism and 400% recommendations. Serious stock market forecasts do not play this game, but derive a well-founded recommendation for action from fundamental data, a trend analysis of the price and the general market environment. Nobody can reliably predict to an investor with 100 percent probability where the stock market forecasts will stand in the future. Ad hoc news can influence the price of a share very quickly; nobody can predict this with certainty, as this is internal company information.

However, it is the job of a reputable and reputable one Stock market letter like taking a look behind the scenes at the PLATOW stock exchange, capturing moods in the executive suite and analyzing real-time prices and news with expertise. Fact-based stock market forecasts can be derived from well-founded analyzes. The stock exchange letter PLATOW Börse specializes in identifying top stocks from the DAX, MDAX, SDAX and TecDAX (German stock market) and presenting detailed buy recommendations. Investors receive detailed instructions they should buy a share including the vote and limit. In addition, the publisher publishes a forecast for the coming stock market year at the end of each year, in which the top 30 stocks are presented that you as a shareholder can buy. The successful virtual template Depot contains selected values ​​from the PLATOW analysts. It is regularly monitored and updated by the PLATOW stock exchange team, because yesterday's stock market forecasts are not very helpful for buying a top stock. This opens up opportunities for new companies to discover the PLATOW stock exchange for investors and to become part of the stock market forecasts. The performance speaks for itself, as the successful model portfolio has achieved a return of over +2,500 percent since it was launched in 1996. If subscribers are accepted into the sample depot, they will receive an email shortly before 9 a.m. with all the important instructions. Investors can see all the top tips directly in their portfolio. Well-founded stock market forecasts are therefore worth every euro. You can now manage your finances as efficiently as a professional.

German stock market: a look beyond the DAX

While Dax shares for around 80 percent of the Market capitalization of listed stock corporations are responsible on the German stock market, there are far more listed companies than the 30 that are represented in the DAX index. According to the database of the German stock exchange, there are 501 companies on the German stock market that are listed. In addition, the German stock market recently celebrated a new one with the DAX index Record high. On January 8, 2021, almost exactly one year after the last record was set, the corks popped again in Frankfurt. At the top, 14,131 points were recorded. This is confirmed by the current bull market on the German stock market. The prices have been rising for years, the indices are getting more and more points. The fact that the DAX still has some catching up to do with the US stock exchanges and the Dow Jones, for example, certainly speaks in favor of German stocks. In New York, the Dow Jones already reached new highs for the price in autumn 2018.

German stock market: the investor structure is extremely interesting. According to calculations by the Deutsches Aktieninstitut, the number of shareholders and owners of equity funds in Germany rose for the fourth time in a row in 2018. A total of around 10.3 million people in Germany owned securities or funds in 2018; that's only 16.2% of the population. In a global comparison, however, this share is anything but high and measured by the capital invested, small investors only make up a small part of the market volume. Germans are much less concerned with their finances than investors in other nations. The value of all securities in circulation on the German stock market was 1.63 trillion euros at the end of 2018, according to surveys by Statista. The German stock market is therefore primarily characterized by institutional investors such as banks, pension funds, foundations and hedge funds.

In addition to DAX shares, small caps from the SDAX or MDAX to be interesting for you as a shareholder to buy. They have a good forecast in analyzes and promise more performance, but they are also fraught with greater risks. So get a professional on the German stock market by your side who will classify the news and reactions of the prices to these values ​​in a forward-looking manner. The qualified experts (CEFA, CIIA) of the PLATOW exchange sift through several listed companies every day and examine their business models. The analyzes (fundamental analyzes and technical chart analyzes) are well-founded and based on the latest standards. With the PLATOW stock exchange you receive a selection of top stock recommendations from a German index with strong performance, which help you to diversify your personal portfolio and to achieve a higher percentage return. This is how you can optimize your finances in a targeted manner.

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