DAX Supercycle: Entering the Age of Global Distribution
The XETR:DAX PEPPERSTONE:GER40 FOREXCOM:GER40 appears to be entering a supercycle phase of global distribution — a period characterized by explosive long-term growth, but also extreme volatility along the way.
This phase is fueled by two key structural forces:
1. Ongoing fiat currency devaluation, which boosts nominal asset prices.
2. German multinational corporations — most of the DAX components are globally diversified businesses, not limited by domestic demand.
As long as these companies maintain solid cash flow and international market exposure, there’s a strong case for sustained growth in the index — despite interim corrections and shakeouts.
We're likely heading into a market environment where prices will advance in giant leaps, but corrections will be sharp and fast. Adaptability will be key.