When we look at the biggest gains in Germany's DAX index of the last year, what stands out is not the size of the returns but how different places they come from. At the top are Infineon from semiconductor with 128%, Siemens Energy from energy with 76% and RWE with 52%, Bayer from pharmaceuticals with 47% and Merck about 19%, DHL from logistics with 32%, Commerzbank from banking with 31% and Deutsche Bank with 23%, and Siemens from industry with 27%. In other words, a name from almost every sector.

This is important because in the US the situation is exactly the opposite. The rise there is almost entirely on the shoulders of a handful of giant tech stocks, with the S&P 500's 10 largest companies accounting for about 40% of the index. We saw the fragility of this concentration in early June, when those few giants lost nearly $2 trillion in a few weeks, dragging the index down even as hundreds of companies rose.

This is the real message of the German list. This is not a single theme rally, it is a broad-based rally, and the more sectors a rally spreads, the healthier and more durable it is considered. Moreover, the story is multi-layered. The defense and infrastructure budget feeds the industry, the energy demand of artificial intelligence feeds Siemens Energy and RWE, rising interest rates feed the banks, and global electrification feeds Infineon.

The real idea for an investor might be this. For someone whose portfolio leans heavily on US technology, this group of German leaders from disparate sectors offers a different exposure, in other words, an opportunity for diversification.

Of course, there is also the other side of the coin. After the sharp rise, valuations are not as cheap as before, 2026 has become more selective and the ECB raised interest rates in June. So the opportunity is real, and attention is a must. Still, Europe, which remained in the shadow of Wall Street for many years, is now on investors' radar much more strongly.