The Dax has fallen low, but not cheap

Bull and bear in front of the Frankfurt Stock Exchange

The Dax has suffered high losses in the past few days.


(Photo: dpa)

Dusseldorf There has never been such a crash in such a short time. Has 40 percent the Dax lost in just a month. Again and again there are strong counter-movements, as on Tuesday. Investors buy because they expect to find favorable entry levels after the price decline.

At least this is signaled not only by the sharp drop in prices, but at first glance also by the valuations of the shares and their companies. The price-earnings ratio (P / E) sets the current prices in relation to the company’s earnings per share and is considered one of the most important key figures in the markets.

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