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Week Ahead: July 27

Short Description

DAX 30: Time to Shine? The DAX 30 index – an average for the top 30 stocks in Germany – has erased all its 2020 losses. This week I ask the question -Is it time for a rotation into European equities like those in the DAX? I also rundown the economic calendar and cover Q2 earnings from Apple, Amazon and Facebook. Thanks! Rich

Video Script

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Hi everyone,

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I’m previewing the IMPORTANT
things for TRADERS to watch this week.



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I’m putting an extra emphasis
on the DAX 30 INDEX

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while I also touch on upcoming
earnings from Apple, Google and

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Facebook AND rundown highlights
from the economic calendar.

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Since we’re talking about
the stock market in GERMANY

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it reminds me of a great German proverb

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“Everything has an end
only a sausage has two!”

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This rally in the DAX index
will have an end too but

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I’ll share why it might not
happen yet, in just a minute.

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By the way if you liked my German
proverb please click the like button

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it really helps us spread
the word about these videos!

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I thought it extra relevant
to talk about the DAX

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since we have a lot of
German data out this week.

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We start with the IFO where expectations
are set to slip slightly in July

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as well as US durable
goods orders on Monday.

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There is Australia CPI but the Fed rate
decision will be the big one on Wednesday.

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On Thursday there is a host
of German data to monitor including Q2

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GDP followed
by preliminary US Q2 GDP.




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Finally we round out
the week with China PMIs,

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German retail sales
and Eurozone Q2 GDP.

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Why the interest in the
DAX Rich? I here you ask.

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well for me there are three
things that are interesting here

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1) The DAX just turned positive for 2020

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2) The 750 billion euro EU
Recovery Fund was just agreed AND

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3) Some big investors are calling for a
“rotation” into Europe from the United States.

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Let’s take those in order.

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The DAX was down 38% in March.

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Now it is positive for the year
and within 5% of an all-time high.

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That’s its fastest
recovery ever.

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Some are understandably
saying we’ve come too far too fast.


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But what I think it realy shows us
is that there is still very

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strong demand for owning
high-quality companies.

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To me that demand makes
sense even with the pandemic.

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Because negative interest
rates in Europe make it

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unattractive to keep your
money in a savings account.

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From an investing standpoint,

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the joint issuance of debt in Europe
spreads the risk between member countries.

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The argument goes that overseas capital
is now more likely to invest in Europe

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because strong economies
like Germany are in

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effect bailing out weaker
economies like Greece.

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So the DAX index should
benefit since it has some of

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Europe’s largest most
stable companies to invest in.

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Lastly, big asset management firms
like Blackrock have said that Europe’s

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better response to the pandemic and
lower resulting rates of unemployment

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makes it a better place to
invest than the United States.

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So they predict investors will rotate
from the United States into Europe.

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Now before I sign off for today,

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mark in your calendar that Facebook reports
Q2 earnings after the bell on Wednesday

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and Apple and Amazon post their
Q2 results after the close on Thursday.

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Right thanks everyone,

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best of luck and make
sure to subscribe to

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our channel so you
don’t miss the next video.

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Thanks for watching!
 

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