The Weak Euro Is Back, And So Are German Stock Bulls
- DAX Index has rebounded 15% from its low in September
- Germany is 2nd best-performing developed market this quarter
This article is for subscribers only.
German stocks, in a bear market less than two months ago, are back in favor.
Investors have piled into the biggest exchange-traded fund tracking the country’s equities in the past two weeks, pushing its market capitalization back up to values last seen in April. Germany’s benchmark DAX Index has regained two-thirds of its losses, and bulls are speculating on further gains via the options market, sending the cost of bullish contracts to the highest levels since at least 2010 relative to bearish ones.