Turning back to the DAX and what might have helped deliver records this summer

As you know this analyst has been absent for the past few days and actually in Europe and meeting some old market contacts and friends there and what has emerged is quite interesting. You see, if you have cash deposits of any meaningful amount, it is quite often impossible to get any bank to offer a fixed rate deposit. It is not about the rate they might offer, it is the fact that they simply do not want your money. That is certainly the case in Spain and it seems likely to be the case in Germany too. So, in the absence of that investment choice, it seems like hot money flow has been forced into the stock markets and if that is the case, then it would certainly explain the recent records in the DAX, would it not? Well, apart from being dangerous it is derisory, if replicated across the region. So, if you are scratching your head wondering why the DAX keeps rising that could be a good answer. Well, in the short-term the DAX has now fallen back further and just now dipped below the 18,900 mark, after stalling earlier at 18,987. The index is currently trading at 18,915