the Dax does not represent Germany. These are 30 companies that don't care a dime now on how well economy in Germany is doing or how much unemployment we have. They make money elsewhere and they make good money, german stocks are still undervalued compared to US-stocks. And now the most important thing is that a country like Germany which has the worst possible gouvernement things can only improve from here. Look at DCX what happened today when Schremp resigned. Get it ? Please try to imagine what happens if CDU comes into force and people get more optimistic again and begin to spend the money instead of saving it. In USA the consumer is already consuming all avalible money or even more. In Germany there is plenty of reserves in that. USA stocks are priced for perfection and things can only get worse from here and in Germany things can only get better and stocks are looking in the future, not the presence. This does not mean German stocks will do well in future, but it means if you have a bright outlook on global economy (which I don't have because of USA problems) German stocks will outperform SP500 by factor of 2 at least. I would not fight against this trend right now, makes no sense. Look at the austrian index to see what happens if big money begin to push things up.
Pretty much all world markets follow the US market and we are consumers they are not. Also there is the expectation that Schroeder's sociliast party will lose and some ex commie women will take the reigns from the christian democrats I think and push through the necessary reforms like corporate tax and no more 8 weeks vacation. It should be interesting to see how the Germans react to it.