Germany, Europe’s historical economic power, is going through a difficult period. Its dependence on Russian energy and trade with China must be reduced and new sources of growth must be found. Investment is necessary and it takes time. As a result, the country’s stock market significantly lagged the U.S. stock market, rising 8.7% compared with the U.S. stock market S&P 500 Index14%.
German gross domestic product The economy fell in the third quarter, taking the rest of the euro zone with it. The Organization for Economic Growth and Development predicts that Germany will be the second-worst performer among 30 developed economies this year, behind Argentina. Next year is also the worst.
German companies may weather the storm economic period But excluding Germany looks like a bad choice in the long run. Given the country’s past propensity for rebounds, there are at least six contrarian investments that could be winners. But first, it’s important to understand the problems facing the country.
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