I have to honestly say, the DAX development over the past few years has been impressive. Anyone who hesitated in 2024 probably regrets it now. The index has soared from record high to record high, and many analysts didn't expect that. Now, as we are in 2026, it's worth looking back and looking ahead.

What happened in 2024? The DAX increased by nearly 20 percent, about 3,000 points. That was incredible. The positive developments in the USA and China were especially notable, along with interest rate cuts by the ECB. This makes stocks more attractive, and loans cheaper for companies. Sounds simple, but it works. Many investors jumped in because they didn't want to be left behind.

The DAX forecast for 2025 was more nuanced. The federal election in February, potential trade conflicts due to tariffs, weakening German economy — those were the risks. And yes, it has become complicated. Still, analysts expected moderate growth between 18,000 and 20,000 points. The index is export-dependent, and if the USA and China are at odds, Germany feels it.

But here’s the interesting part: The 40 companies in the DAX don’t just earn their money in Germany. Siemens, SAP, Allianz — they are active globally. That’s why the index didn’t suffer as much as one might think, even though the German economy was on the brink of recession. Insurers posted record profits, SAP reached new highs. This shows that you shouldn’t just look at the German economy, but at the earnings of the companies.

The DAX forecast for the coming years looks positive in the long term. Experts expect target levels between 26,000 and 30,000 points by 2030. That would be an average growth of about 6 to 9 percent per year. Historically, that’s realistic. The DAX is a performance index, meaning dividends are reinvested. That helps with growth.

What are the opportunities now in 2026? Technology, infrastructure, commodities — these are the sectors that professionals are betting on. Individual stocks like Daimler Trucks, RWE, and Merck have high potential. Heidelberg Materials also benefits from global infrastructure projects. The German stock exchange remains stable, SAP is a growth machine with cloud and AI.

How to invest sensibly? ETFs are the easiest solution if you want broad diversification. iShares and Xtrackers offer good options with low fees. If you want to target specific companies, you need more attention, but the potential is higher. CFDs are interesting for experienced traders but also riskier.

Important: Don’t put everything into the DAX. The index focuses on a few sectors and heavyweight companies. That’s a risk. Better to combine with global indices, maybe also include bonds or commodities in your portfolio. Stop-loss and take-profit orders are sensible to remove emotions from trading.

My conclusion: The DAX forecast remains positive, but patience and strategy are needed. 2024 was a good year, 2025 was more volatile. Now in 2026, think long-term, rebalance regularly, and don’t panic if prices drop. German companies are solid, and the DAX will continue to grow if you find the right mix.