Germany: opportunities in slower pace

Germany is in the heart of Europe and is also somehow a heart for the European economy. The Great Recession experienced since 2007 affected deeply the European Union. In the middle of the discussions amongst the EU partners, Germany has imposed its strength with austerity to control public budgets. But today the receipt shows to be not necessary the best, as some experts speaks about a third recession in Europe. The warning comes from the weak figures in Germany.

The main European economy is very well monitored: there are several indexes about business or consumers climate. The most famous are IFO and GfK. Let’s see the business climate: there has been a worsening this year.

IFO business climate chart

A cough in Germany means an illness in the rest of the European countries. Germany has a strong industry and export branch. Chemicals, carmakers, electronics… are some of the main sectors. What is happening in the German stock exchange while the country is living these negative signs?: T-Advisor global trends tool shows that only a 9% of the listed companies are bullish this week.

T-Advisor global trend chart for Germany

DAX index, the German selective index in the stock exchange, shows that the main winners this year are chemicals (Fresenius, Merck and Bayer). Financials has only a representative (Commerzbank) as the branch does not experience its best year.

T-advisor DAX winners

On the opposite, the weakest equities are financials (Deutsche Bank and Deutsche Boerse), the national airline Lufthansa and two industrial companies, one of them related to consumers (Adidas).

T-Advisor DAX losers

Investment opportunities in Germany are still high although economic figures tend to be negative. T-Advisor has a steady model portfolio with German stocks rebalanced every second month. The portfolio had never losses. These are the main data from it:

T-Advisor Germany model portfolio

It is possible that Germany experiences again hard times, but investors have to look into the market with high-quality tools to find the best opportunities. T-Advisor monitors deeply the German market to provide this service.

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