Solid stocks for wild times

The Dax has risen sharply since the beginning of the year. Is it still worth investing in money or is everything already exhausted? The answer could be a strategy from the seventies.

The DAX curve in the trading floor of the Frankfurt Stock Exchange

WITHu It didn’t look good at the beginning of the year. The Dax had seen a decline, falling to a level of a good 10,300 points just before the turn of the year. Nobody wanted to believe that things could look up again soon. The German share index now stands at almost 13,000 points. So it’s been a good year for the stock market so far. At least for everyone who has already invested. For everyone else who still wants to invest money now, the situation is more tricky. Have you missed the best? Or to put it another way: Hasn’t everything been exhausted so that entry is now actually forbidden?

Sometimes it helps to take a look at history, this time almost half a century back to 1972. At that time, the American brokerage firm Kidder Peabody & Company was looking for new incentives to encourage its investors to continue buying shares. She selected 50 companies that, regardless of their high valuations with price-earnings ratios (P / E ratios) between 46 and 92, would still be worth buying. It chose the titles of companies whose business models appeared so promising that strong sales and profit growth were to be expected in the future and the high market valuation thus lost its importance.