Europe is increasingly looking like it is heading into a recession. High energy prices, high costs, low water levels in the Rhine, and recent subdued business sentiment from Germany have all led to increased pessimism over Europe and a coming recession.

Is this negative sentiment going to start to weigh more heavily on stocks? If this sentiment looks to deteriorate further then look at the seasonal weakness that the Dax has at this time of year.

Over the last 25 years, the DAX has had an annualised return of -30.56%. Does this mean that the DAX is suitable for selling on this seasonally weak pattern?

Major Trade Risks: The major risks are from any relief in either energy prices and/or the end of the Russian/Ukraine crisis.

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