DAX over 24,000 points: record or risky game for investors?

DAX over 24,000 points: record or risky game for investors?

The DAX exceeded the historic mark of 24,000 points on Tuesday, May 20, 2025. This represents a significant milestone for the leading German stock index, which reaches this point for the first time. The positive development of the DAX this year is remarkable: it has gained over 20% since the beginning of the year, showing a strong performance on the stock market. Companies such as Rheinmetall and Commerzbank, which have gained 180% and 60% respectively since the beginning of the year, play a fundamental role in this growth, which excites many investors.

Despite the positive development, experts urge caution when evaluating German stocks. This is viewed particularly critically given the current geopolitical tensions and other underlying conditions that could weigh on the markets. Ulrich Kater, chief economist at DekaBank, emphasizes that many DAX companies depend heavily on economic developments abroad.

Opportunities and risks for the DAX

The current situation still offers significant opportunities for the DAX. According to the analysis, possible interest rate cuts by the European Central Bank, which could stimulate investments, as well as a stable global economy, which will particularly benefit German export companies, could be decisive. Furthermore, the favorable valuation of the shares represented in the DAX is viewed as positive compared to their profits. ZDF reports that these positive market movements also occur in the context of a normalizing global economy.

However, there are also challenges that investors have to face. Rising wages could increase costs and prevent falling interest rates, while geopolitical conflicts and uncertainties, such as the Ukraine war or the situation in China, could destabilize markets. Meanwhile, fear of missing out on the rally, also known as FOMO (Fear of Missing Out), is growing among investors.

Market developments and criticism

However, experts warn of possible bubbles, especially in the USA, and recommend careful monitoring of developments. The positive mood on the markets continues despite geopolitical tensions. Artificial intelligence is also identified as a major growth driver, from which companies such as SAP, Siemens, Mercedes-Benz, Allianz and Airbus could benefit. These five stocks contributed significantly to the DAX's record rise.

Analyst Eugen Keller from Bankhaus Metzler sees irrationality in the German stock market and is sure that setbacks are likely sooner or later. According to Kater, the stock market does not follow fixed patterns, which means that periods of consolidation after price increases are normal. Financial experts therefore recommend careful observation of the markets and diversification of investments in order to spread potential risks and take advantage of opportunities.