Investors in Germany start the new year with fresh optimism

Investors and managers are starting the new year with an optimistic mood, although today the German stock market kicks off its first session in 2019 with a fall.

"Investors who have healthy nerves can take advantage of bad market conditions like the current ones to get new purchases." - says Reinhard Panse, CQ of the HQ Trust.

DAX initially opened a decline of nearly 1.6% at the beginning of today's European session. But the market recovered some of the losses by even turning green.

Panse notes that the expectations of market players are so negative that even worse happening alongside Brexit or trade talks between the US and China is that the shares may not react so dramatically, but instead can start rallying, especially if the central banks decide to intervene.

His comments are supported by Hendrik Koenig, who is a financial analyst at Bankhaus Metzle. He expects the fears of an impending recession to disappear gradually over time, even if there is some uncertainty at the moment.

"In the first quarter, we recommend avoiding a uniform portfolio only in stocks, but buying stocks from a variety of companies that keep a good profit even in tough times." - Koenig adds.

Both of them point to stock ratings in the German market, which are currently below the average in the long run. Shares are currently cheap enough to create attractive shopping opportunities.

"The German market is currently giving us fairly low prices for the stocks last seen during the two wars against Iraq in 1990 and 2003, or at the time of the collapse of the European monetary system in 1992." "says Pance. Koeig says he expects a possible new growth cycle in stocks, especially for heavily impaired companies such as Deutsche Lufthansa, AG, SAP SE and K + S AG.

Source: Bloomberg Finance L.P.

Graphs: Used with permission of Bloomberg Finance L.P.

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