Correction needed in Neuer Markt

After a low on 30 September 1999, the German Nemax All Share had increased 196.6% by 23 March 2000. Parallel to this, the Blue Chip Index Nemax 50 rose by 141.8% over the same period. We consider this drastic increase as exaggerated. While the steep fall at the end of September can still be termed an overreaction to placement problems, we are now witnessing a boom driven by high liquidity which is not justified by fundamentals. The factor which will ultimately trigger a correction is not in sight just yet, but signs shows a relatively clear need for correction. The only real argument aga...