German stocks are having an absolutely massive 2015 so far.
The country’s growth has outstripped expectations, unemployment still seems to be falling and Europe-wide retail sales are accelerating at the fastest pace in a decade.
The DAX, the major index of German stocks, is up 40% over the past five months, accelerating particularly this year. Here’s a chart from Deutsche Bank chief international economist Torsten Slok:
Here’s Slok: “German stocks have increased 40% over the past five months. Combined with the euro depreciation and lower oil prices it all points to more upside risk to the economic outlook for Europe.”
The euro has tumbled, which should give Germany’s already-powerful exporters another boost — Goldman Sachs is now forecasting that the euro will drop to parity with the dollar in just six months, and on to $US0.80 by the end of 2017.
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