Germany CDAX Index Performance From 1930 To 1950

The German equity market soared from 1931 and continued to rise when Hitler started the Blitzkrieg. The market was closed in Aug, 1944 and remained closed until mid 1948. When it opened it took a straight plunge.

The following chart shows the performance of the CDAX Index from 1930 to 1950:

Click to enlarge

Source: Stock Markets during the second World War, Investment Office

Excerpts from the book Wealth, War & Wisdom, 2008-Barton Biggs:

“In late 1939, however, well ahead of the Blitzkrieg stock prices began to anticipate the overwhelming victories of 1940.”

“By 1940 and throughout 1941 the German economy was booming from military production. (…) The interesting insight is that by the late fall of 1941, the Berlin market was somehow sensing that Hitler’s luck, his infallibility were fading and that Germany’s military momentum had crested. (…) Did anyone know the tide had turned except the stock market? Certainly a few of the generals suspected.”

Leave a Reply

Your email address will not be published. Required fields are marked *