Today the DAX has reached a 20% return since its February lows. Therefore entering what is known as a bull market. It is also trading at a price/earnings ratio of 23.87 with a dividend yield of 2.90. Whether that is cheap or not I will leave to the pro stock pickers. That dividend yield is the be all and end all as to why we are have entered this bull market. The regular "bond and stock" portfolio investor is being forced to chase income, yield, returns of any sought. Which can not be found in bonds. Bond yields are negative for European and now even US sovereign bonds (once a Euro investor hedges their EUR/USD currency risk, also for Japanese investors now too) So stocks with dividends are being indiscriminately bought - whether they are "cheap" or not. A dividend yield of 2.9 is better than negative yielding debt. Well on an income basis, yes. But one has to keep in mind Warren Buffet's chorus "Price is what you pay. Value is what you get." Read more here... (VIEW LINK)