IN German, the term "Sommerloch" is used for what some call a "summer slump." We know this summer gap occurs every year, and investors also retreat a bit into the shade. This year, "das Sommerloch" in Germany is, unfortunately, more than just temporary when it comes to the economy.
The German economy is in bad shape and risks dropping into a hole, which may surprise some investors. After all, the leading German stock index, DAX, is up by approximately 15 percent this year, and such an increase must be justified. Otherwise, the risk becomes a counter-correction.
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