Editor's Note: This is an excerpt from Hedgeye research written earlier this morning. Click here for more information on how you can become a subscriber.
Germany is one equity market we want to highlight this morning.
The DAX continues to be in a bullish formation and we remain long term bulls. Exports account for 47% of German GDP, so Mario Draghi’s weak EUR policy is obviously a huge TAILWIND for Germany. In addition, their fundamentals are outperforming peers and are showing positive lift (business & economic confidence; IP, factory orders, etc).
Even as the DAX has had a major run over the past six months, over the past five years, it has dramatically underperformed its U.S. counterparts. On a related note, tomorrow at 11am, our European Analyst Matt Hedrick will be presenting a 50-page deck that outlines that continued case to be long of German equities.
Ping firstname.lastname@example.org for access.