Dusseldorf Rising energy prices, disrupted supply chains and supply bottlenecks – given the ongoing war in Ukraine, a weakening of the global economy and possible recession is no longer an unrealistic scenario.
That would hit many German companies with strong exports in particular. Added to this is Germany’s often-discussed dependence on Russia when it comes to gas supplies. This affects not only private consumers, but the entire German industry, for example the steelmakers or the chemical companies.
Uncertainty is high and many investors are wondering how they can protect their portfolio against possible losses. Handelsblatt stock analyst Ulf Sommer says: If the economy goes down, then shares that are resistant to the economic cycle are in demand, and in the best-case scenario they are also valued cheaply. In the Dax he found a number of titles to which both apply.
In addition to the beneficiaries of the turnaround in interest rates such as the insurer Allianz and Deutsche Bank, according to Sommer, these are the energy company Eon and the healthcare group Fresenius. Sommer points to Allianz’s attractive dividend yield of currently more than five percent. And Deutsche Bank suffered from the financial crisis for a long time, but “the time of suffering is over now,” he says.
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In the new episode of “Handelsblatt Today Extended”, Sommer explains why, despite the glyphosate legal risks in the USA, Bayer also sees good price opportunities. He also lists a few other Dax values that would not react too sensitively to an economic downturn, but are valued relatively cheaply at the same time.
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