What risks do analysts warn about regarding Germany's federal election impact on markets?

Analysts warn about the dangers of assuming a definite election outcome or underestimating potential market volatility following Germany's federal election. They point to historical precedent, specifically citing last year's European Parliament elections which resulted in unexpected political changes in France and triggered a significant market sell-off. This example highlights the inherent uncertainty in electoral processes and their market implications. With Germany's DAX at record highs, some investors may be overly confident about a market-friendly outcome, but experts caution that coalition dynamics could shift unpredictably, creating risks for those betting on specific electoral results.