The stock market is a highly unequal affair. Only a few shares ensure the price increases in the indices. The majority of values show a measly or even negative performance in the long term.
This can also be observed in the German stock index Dax. Again, only a handful of stocks provide gains, while many trouble spots slow the index’s performance. The stupid thing about it: while it’s always the same titles on Wall Street that make the race and bring the performance, there are far too few such superstar stocks on the Dax. The majority of the Dax values are too unstable to find long-term runners here. One can almost speak of the curse of the Dax.
This constant change between the tops and flops of a year makes it almost hopeless for active fund managers to beat the Dax through clever stock selection. As a result, none of the major German funds has managed to outperform the index, either in the short term or over a five-year period. Private savers should also know the strange peculiarities of the Dax if they want to make money with German blue chips.