By Michael Msika, Bloomberg Markets Live reporter and strategist

The rush to bet on German stocks has further to run following the country’s elections, though investors might be getting carried away about any big reforms happening soon.

The country’s DAX price index, which is the DAX without dividends, has surged over 16% since the decision in November to hold the elections, making it the best performing major benchmark in Europe. The biggest move since Sunday’s election has been in the mid-cap MDAX, which rallied 1.5% yesterday, a bet on the potential for more borrowing and spending to reboot the economy under a new government.

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