Two reasons not to like DAX
There are a couple stocks to buy, but also reasons to tread carefully
The first is sensitivity to the Euro, as seen in the above chart.
The second is composition. There’s too much automotive and financial stuff in the DAX:
Banks are largely a rate play. The automakers are floundering in a world of excess capacity and disappointed during Q2, and they also have the diesel scandal to overcome. VW looks cheap at 5.5X forward earnings. I like BASF, Siemens and a couple of other big industrial companies. But the index as a whole doesn’t persuade me.