The strength of the German stock market has surprised many commentators, particularly in light of the parlous state of the Eurozone in general. More surprisingly, the recent resurgence in growth appears to stem from domestic consumption rather than export led demand resulting from Euro weakness.
The DAX Midcap has outperformed the large cap DAX index for several years, suggesting that this trend is not new. Now may be the time for the large cap, export oriented stocks to catch up. Real Estate is also worth considering given the level of Bund yields, but don’t expect to see any capital gains.