DAX securities are even relatively cheap: even at their all-time high, it is not too late to enter the stock exchanges

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The Dax is at all-time highs. However, investors should not sell shares now. Economically, things are not looking bad, at least in the case of stocks. The valuation also remains cheap. Fear of a correction should not keep investors out of the market.

To get straight to the point: yes, not only can you keep investing, you should even keep investing. And above all: you should not sell if you are invested. Just because the stock market is going from one all-time high to another all-time high doesn't mean there will be a correction soon.

Never go against the trend, it is a well-known stock market saying. If the market wants to go up, that's what it wants. Avoiding this trend or even opposing it can be a serious mistake, especially for investors who want to build long-term wealth with stocks.

Despite all-time high: attractive valuation level

But what does it mean for the demonstration to continue? Valuation alone leaves room for Dax. The main German index currently has a price-earnings (P/E) ratio of around eleven. This means it is valued at eleven times its earnings. This is favorable, both historically relative to the DAX itself and compared to other indices. This is how the S&P 500 comes, for examplea leading US stock market index, currently has a P/E ratio of around 26. Even if one assumes that earnings developments in the US are more dynamic than in Germany, such a valuation difference is difficult to keep in the US long term.

About the expert

Markus Zschaber is the founder of VMZ Vermögensverwaltungsgesellschaft in Cologne

What also speaks in favor of the German market is the sometimes quite high dividend yield. Only car values ​​in the Dax, i.e. VolkswagenMercedes and BMW, WKN 519000″>BMW, have returns of over six percent. That's very good, very good, even if you take into account that companies have some problems. But also insurance companies like Allianz can convince in terms of dividend yield. And measured by the P/E ratio, even problematic industries like construction are interesting, such as Heidelberg Materials sample. For 2024, the building materials maker's stock has a P/E ratio of just under 9.

Successful combination for the stock market

Well, valuation is one thing and economics is another. But there is hope here too. Although marginal growth of 0.2 percent is expected in Germany this year, forecasts for 2025 are at least one percent. Growth in this country is not that important. The global economy is more important, as German companies generate a large part of their sales abroad. Experts expect global growth of just over three percent by 2025.

More expert knowledge

You will find this and other asset managers with their opinions and investment strategies online at V-Check.de

None of these are outstanding figures, it is true, but they show that we seem to have reached the bottom of the economy. If the economy recovers, that will be good for the stock market. The past has shown that stocks perform especially well when, on the one hand, interest rates fall, which is generally expected this year, and, on the other, when the economy improves.

It often takes a while for interest rate cuts to affect stocks. To put it somewhat loosely, interest rate cuts first have to be digested by the market. Falling interest rates and stabilizing the economy are considered a successful combination for the stock market in the medium term.

It is also worth investing in the all-time high.

Of course, a market correction may or may not occur in the coming months. Nobody knows and such a correction cannot be predicted. In any case, the reviews don't talk about it.

But the risk that an investor, if he sells his shares in view of the DAX's all-time high, will be left on the sidelines and will have to watch the next rally because he failed to get in, is extremely high. The only remedy that helps here is to go ahead and make gradual and targeted purchases.

Bottom line: yes, it's worth buying at its all-time high. It's not too late for that. Instead of waiting out of fear, it is necessary to constantly analyze the opportunities and risks of the stock market in detail and draw the appropriate conclusions from them. And the conclusion for the moment is: it's still cheap.

Please note the disclaimer.

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