German stock markets are outperform the S&P 500 by 10.3% according to an analysis from investment bank Credit Suisse.
The benchmark German DAX index is up 5.5%.
Credit Suise is not alone.
Investors are picking up on a bullish tone for German stocks.
They believe the economy will soon be able to recover from the global financial crisis and Germany will soon become a global leader in the area of finance.
The SPDR S&s 500 index is outperforming the US market by 5.3%.
The S&p 500 index has gained 9% over the past month, and is up more than 5% in the past year.
But there are some red flags in Germany’s markets.
The country’s central bank is planning to hike interest rates in the coming weeks.
Meanwhile, investors are also betting against the country’s bond yields.
German bond yields have dropped to a new low.
The yield on a five-year German bond is now 0.85%, down from 0.91% on December 8.
The Federal Reserve has been planning to raise rates in December and January.