Investment24: Upward Trend Continues

Bailout plan for Greece and the prospect of positive U.S. job market data let the stock quotations further increase

Baech (Switzerland), March 31, 2010 – The German stock market index raised almost 700 points within only one month. Currently DAX reached about 6.150 points. Last week the index increased by 2.3 percent. Compared to S&P 500, which just increased by 0.6 percent. Thus the German stock market index almost regained its losses, which it had to face after the collapse of Lehman in September 2008 and the momentum still endures. „With its rapid growth DAX has clearly outperformed the U.S. indices within the past weeks. Therefore, the question is not, if a share price correction will occure, but when it will occure. The more the markets are overheated, the higher is the risk of a share price correction”, states Bernd M. Otto, CEO of Investment24.

Obviously concerns about the budgetary crisis in Greece, which some market participants recognized as a catalyst for anew financial crisis, are forgotten. In fact, the decision of the European heads of states or government to save Greece from an imminent bankruptcy, aroused investor’s enthusiasm. This not only drives share prices to new highs, but also backs up the euro rate. After the EU decision EUR/USD could regain considerably and noted at about 1.34 at the end of last week.

Bernd M. Otto from Investment24 Research proceeds on the assumption that most of the market participants assume positive job market data, which will be published by the U.S. government on Friday, and therefore buy shares. „Even if the high number of new jobs, which the U.S. government recreated shortly, skews the picture, it is currently only deciding how much people are able to get back in employment. New jobs are the only way to boost consumption in the USA“, declares the analyst. The considerable growth of U.S. consumer confidence as well as the unexpected sharp rise of the consumer confidence index in Europe indicate that the share price rally will continue. ISM index is another much-noticed U.S. indicator, which will be published on Thursday.

In the opinion of Bernd M. Otto it is possible that today the so called window dressing by institutional investors will proceed, especially as today’s end of month falls on the same date as the end of the quarter. From Thursday on (April 1st) a sell-off could follow, unless better than expected economic data will boost the stock markets. After an increase of 700 points without considerable corrections in DAX, the chance for further growth diminishes.

About Investment24:
Investment24 AG, based in Switzerland, provides quality information about interesting opportunities on world stock markets. The company not only demonstrates a positive performance in excess of 350 percent since July 2007, but it also offers a high degree of transparency. This is in sharp contrast to other stock market or financial services newsletters. All transactions are explained in detail, and are provided with background information. These results are achieved with professional risk and money management. CEO and editor of the stock market letter is Bernd M. Otto, supported by experienced staff.
www.investment24.com

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This release was published on openPR.