Inflation is falling, indices are rising – Year-end rally ahead!

Last Updated: 30. November 2023By

Inflation is continuing to decline in Germany! According to recent preliminary reports, inflation has fallen to 2.9% in both Hesse and Bavaria, and even to 2.8% in Bavaria. Analysts had anticipated further declines, but their estimates were 3.7% and 3.6%, respectively. Other states in Germany and countries in the Eurozone have experienced similar developments.

Inflation across the Eurozone has also significantly decreased in November. Consumer prices were 2.4% higher than in November 2022. In October, inflation this year was still 2.9%, and a year ago it was 10.1%. Therefore, prices decreased by 0.5% in November compared to the previous month.

The core inflation rate also decreased, meaning the inflation rate excluding volatile energy and food prices. Here, prices in Europe decreased from 4.2% to 3.6%. This means that food prices were still much higher than a year ago, but the price increase fell from 7.4% to 6.9%. Energy prices decreased by 11.5%.

Although the price increase is still declining, it still falls short of the European Central Bank’s medium-term target of 2%.

Investors have immediately responded to the good news and have become more confident after the start of the week was more cautious. The DAX yesterday dynamically moved away from the resistance level of 16,000 points and US stock markets also signal the continuation of the year-end rally.

The German leading index is now sustainably above the 16,000 mark. This is good news for you and me as investors. Everything is currently going according to plan.

I hope you have taken my advice and have already taken positions in your favorite stocks in order to take advantage of the year-end rally in the coming weeks and months. You can rely on this rally – the chances are very good.

Those who still have cash can still collect many quality stocks at a comparatively low level. Otherwise, the motto on the stock market remains: Be there or be square.